Financial Contrast: GFL Environmental (GFL) versus Its Competitors

GFL Environmental (NYSE:GFL) is one of 39 public companies in the “Waste Removal Svcs” industry, but how does it weigh in compared to its competitors? We will compare GFL Environmental to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Volatility and Risk

GFL Environmental has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, GFL Environmental’s competitors have a beta of 0.63, suggesting that their average share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for GFL Environmental and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	0	2	8	2	3.00
GFL Environmental Competitors	324	1120	1895	131	2.53

GFL Environmental presently has a consensus target price of $54.50, indicating a potential upside of 13.00%. As a group, “Waste Removal Svcs” companies have a potential upside of 10.76%. Given GFL Environmental’s stronger consensus rating and higher possible upside, analysts clearly believe GFL Environmental is more favorable than its competitors.

Profitability

This table compares GFL Environmental and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	36.01%	3.93%	1.43%
GFL Environmental Competitors	-97.39%	-458.26%	-3.72%

Valuation and Earnings

This table compares GFL Environmental and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GFL Environmental	$7.99 billion	-$527.43 million	9.88
GFL Environmental Competitors	$3.57 billion	$273.35 million	30.24

GFL Environmental has higher revenue, but lower earnings than its competitors. GFL Environmental is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

GFL Environmental pays an annual dividend of $0.06 per share and has a dividend yield of 0.1%. GFL Environmental pays out 1.2% of its earnings in the form of a dividend. As a group, “Waste Removal Svcs” companies pay a dividend yield of 1.0% and pay out 39.5% of their earnings in the form of a dividend. GFL Environmental has raised its dividend for 5 consecutive years.

Institutional & Insider Ownership

64.7% of GFL Environmental shares are held by institutional investors. Comparatively, 57.0% of shares of all “Waste Removal Svcs” companies are held by institutional investors. 8.7% of GFL Environmental shares are held by company insiders. Comparatively, 12.7% of shares of all “Waste Removal Svcs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

GFL Environmental beats its competitors on 11 of the 15 factors compared.

GFL Environmental Company Profile

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.