Critical Analysis: Advanced Disposal Services (ADSW) vs. Its Rivals
Advanced Disposal Services (NYSE: ADSW) is one of 20 public companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it contrast to its peers? We will compare Advanced Disposal Services to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.
Insider and Institutional Ownership
96.5% of Advanced Disposal Services shares are owned by institutional investors. Comparatively, 52.9% of shares of all “Waste Management, Disposal & Recycling Services” companies are owned by institutional investors. 1.2% of Advanced Disposal Services shares are owned by company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are owned 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 is a breakdown of recent recommendations for Advanced Disposal Services and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Disposal Services||0||2||6||0||2.75|
|Advanced Disposal Services Competitors||46||281||589||14||2.61|
Advanced Disposal Services presently has a consensus price target of $26.00, suggesting a potential upside of 12.17%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 10.57%. Given Advanced Disposal Services’ stronger consensus rating and higher probable upside, analysts clearly believe Advanced Disposal Services is more favorable than its peers.
Volatility and Risk
Advanced Disposal Services has a beta of -0.67, suggesting that its share price is 167% less volatile than the S&P 500. Comparatively, Advanced Disposal Services’ peers have a beta of 0.62, suggesting that their average share price is 38% less volatile than the S&P 500.
Valuation & Earnings
This table compares Advanced Disposal Services and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Advanced Disposal Services||$1.40 billion||-$30.40 million||-82.78|
|Advanced Disposal Services Competitors||$850.65 million||$28.19 million||148.65|
Advanced Disposal Services has higher revenue, but lower earnings than its peers. Advanced Disposal Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Advanced Disposal Services and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Disposal Services||-1.61%||5.84%||1.41%|
|Advanced Disposal Services Competitors||-280.98%||-68.19%||-14.48%|
Advanced Disposal Services beats its peers on 8 of the 13 factors compared.
About Advanced Disposal Services
Advanced Disposal Services, Inc. is an integrated provider of non-hazardous solid waste collection, transfer, recycling and disposal services operating primarily in secondary markets or under exclusive arrangements. The Company’s segments include South, East, Midwest and Corporate. As of December 31, 2016, the Company had its presence in 16 states across the Midwest, South and East regions of the United States, as well as in the Commonwealth of the Bahamas, served approximately 2.7 million residential customers and over 200,000 commercial and industrial (C&I) customers through its network of 90 collection operations, 72 transfer stations, 21 owned or operated recycling facilities and 39 owned or operated active landfills. The Company’s vertically integrated environmental services operations can be classified into three lines of business: collection services, disposal services and recycling services. The disposal services include transfer stations and landfills.
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