Covanta Holding Corporation (CVA) and Clean Harbors (CLH) Financial Comparison
Clean Harbors (NYSE: CLH) and Covanta Holding Corporation (NYSE:CVA) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitabiliy, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
96.0% of Clean Harbors shares are held by institutional investors. Comparatively, 90.1% of Covanta Holding Corporation shares are held by institutional investors. 9.5% of Clean Harbors shares are held by company insiders. Comparatively, 11.6% of Covanta Holding Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Clean Harbors and Covanta Holding Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Covanta Holding Corporation||-0.94%||-8.88%||-0.94%|
Risk & Volatility
Clean Harbors has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Covanta Holding Corporation has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
Valuation and Earnings
This table compares Clean Harbors and Covanta Holding Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Clean Harbors||$2.81 billion||1.15||$404.91 million||($0.70)||-80.90|
|Covanta Holding Corporation||$1.70 billion||1.09||$304.00 million||($0.14)||-102.14|
Clean Harbors has higher revenue and earnings than Covanta Holding Corporation. Covanta Holding Corporation is trading at a lower price-to-earnings ratio than Clean Harbors, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Clean Harbors and Covanta Holding Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Covanta Holding Corporation||1||2||5||0||2.50|
Clean Harbors presently has a consensus target price of $59.40, indicating a potential upside of 4.89%. Covanta Holding Corporation has a consensus target price of $17.38, indicating a potential upside of 21.50%. Given Covanta Holding Corporation’s higher probable upside, analysts plainly believe Covanta Holding Corporation is more favorable than Clean Harbors.
Covanta Holding Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 7.0%. Clean Harbors does not pay a dividend. Covanta Holding Corporation pays out -714.2% of its earnings in the form of a dividend.
Clean Harbors beats Covanta Holding Corporation on 9 of the 15 factors compared between the two stocks.
Clean Harbors Company Profile
Clean Harbors, Inc. is a provider of environmental, energy and industrial services throughout North America. The Company is also a re-refiner and recycler of used oil in the world and a provider of parts cleaning and related environmental services to commercial, industrial and automotive customers in North America. The Company operates in six segments: Technical Services, Industrial Services, Field Services, Safety-Kleen, Oil and Gas Field Services, and Lodging Services. The Company is also a service provider in the recovery and decontamination of pollutants. The Company provides services to protect the ozone layer from the effects of chlorofluorocarbons (CFCs). The Company offers brands, such as Performance Plus brand and green brand EcoPower. The Company also offers CleanPack services, which include the collection, identification and categorization, packaging, transportation and disposal of laboratory chemicals and household hazardous waste.
Covanta Holding Corporation Company Profile
Covanta Holding Corporation is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. The Company operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada. Outside of North America, the Company is constructing an energy-from-waste (EfW) facility in Dublin, Ireland. The Company holds interests in an EfW facility in Italy and an infrastructure business in China, which is engaged in EfW operations. These EfW projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the EfW process.
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