Comparing Black Diamond Group (OTCMKTS:BDIMF) and GFL Environmental (NYSE:GFL)

GFL Environmental (NYSE:GFL) and Black Diamond Group (OTCMKTS:BDIMF) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares GFL Environmental and Black Diamond Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	-3.28%	4.14%	1.55%
Black Diamond Group	4.60%	7.24%	2.96%

Insider and Institutional Ownership

64.7% of GFL Environmental shares are owned by institutional investors. 8.7% of GFL Environmental shares are owned by insiders. Comparatively, 25.2% of Black Diamond Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

GFL Environmental has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Black Diamond Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for GFL Environmental and Black Diamond Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	2	2	9	0	2.54
Black Diamond Group	0	0	1	0	3.00

GFL Environmental presently has a consensus price target of $57.67, indicating a potential upside of 34.74%. Given GFL Environmental’s higher probable upside, research analysts plainly believe GFL Environmental is more favorable than Black Diamond Group.

Earnings and Valuation

This table compares GFL Environmental and Black Diamond Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GFL Environmental	$4.73 billion	3.26	$2.74 billion	($0.53)	-80.75
Black Diamond Group	$326.99 million	2.94	$24.93 million	$0.25	56.20

GFL Environmental has higher revenue and earnings than Black Diamond Group. GFL Environmental is trading at a lower price-to-earnings ratio than Black Diamond Group, indicating that it is currently the more affordable of the two stocks.

Dividends

GFL Environmental pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Black Diamond Group pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. GFL Environmental pays out -13.2% of its earnings in the form of a dividend. Black Diamond Group pays out 52.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. GFL Environmental has raised its dividend for 5 consecutive years.

Summary

Black Diamond Group beats GFL Environmental on 9 of the 17 factors compared between the two stocks.

About GFL Environmental

GFL Environmental Inc. offers non-hazardous solid waste management and environmental services in Canada and the United States. It offers solid waste management, liquid waste management, and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, and commercial, and industrial customers. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.

About Black Diamond Group

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.