Waste Management (NYSE:WM) and China Industrial Waste Management (OTCMKTS:CIWT) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk & Volatility

Waste Management has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, China Industrial Waste Management has a beta of -0.35, meaning that its share price is 135% less volatile than the S&P 500.

Earnings and Valuation

This table compares Waste Management and China Industrial Waste Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waste Management $14.49 billion 2.68 $1.95 billion $3.22 28.33
China Industrial Waste Management N/A N/A N/A N/A N/A

Waste Management has higher revenue and earnings than China Industrial Waste Management.

Dividends

Waste Management pays an annual dividend of $1.86 per share and has a dividend yield of 2.0%. China Industrial Waste Management does not pay a dividend. Waste Management pays out 57.8% of its earnings in the form of a dividend. Waste Management has increased its dividend for 14 consecutive years.

Institutional & Insider Ownership

75.2% of Waste Management shares are held by institutional investors. 0.3% of Waste Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Waste Management and China Industrial Waste Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waste Management 15.60% 27.93% 7.70%
China Industrial Waste Management N/A N/A N/A

Analyst Ratings

This is a summary of current ratings and price targets for Waste Management and China Industrial Waste Management, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waste Management 0 1 6 0 2.86
China Industrial Waste Management 0 0 0 0 N/A

Waste Management presently has a consensus target price of $97.50, indicating a potential upside of 6.90%. Given Waste Management’s higher possible upside, analysts plainly believe Waste Management is more favorable than China Industrial Waste Management.

Summary

Waste Management beats China Industrial Waste Management on 11 of the 12 factors compared between the two stocks.

About Waste Management

Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It provides collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations. As of December 31, 2017, the company owned or operated 244 solid waste landfills; 5 secure hazardous waste landfills; 90 MRFs; and 305 transfer stations. It also provides materials processing and commodities recycling services; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. Further, it portable self-storage and long distance moving services; fluorescent bulb and universal waste mail-back services through LampTracker program; portable restroom services under the Port-o-Let name; and street and parking lot sweeping services, as well as holds interests in oil and gas producing properties. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.

About China Industrial Waste Management

China Industrial Waste Management, Inc. provides environmental services and solutions in northeastern China. The company collects, stores, treats, disposes, and recycles industrial solid waste through incineration and/or landfill, physical and/or chemical treatment, material processing, packaging, analysis, and storage. It is also involved in the treatment of municipal sewage, as well as sludge resulting from the processing of sewage that is routed from the sewage treatment facilities located in Dalian and surrounding areas. The company operates a sewage treatment facility and a sludge treatment facility in Dalian, as well as provides environmental pollution remediation services to the Dalian municipal government. In addition, it offers environmental protection, technology consultation, pollution treatment, waste management design processing, waste disposal, waste transportation, and onsite waste management services. The company sells its recycled materials, including cupric sulfate, as well as metals and methane derived from sludge treatment to commodity traders and metallurgical companies. China Industrial Waste Management, Inc. was founded in 1991 and is based in Dalian, China.

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