Casella Waste Systems (NASDAQ:CWST) and GFL Environmental (NYSE:GFL) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
This table compares Casella Waste Systems and GFL Environmental’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Casella Waste Systems||12.09%||17.54%||4.09%|
94.3% of Casella Waste Systems shares are held by institutional investors. Comparatively, 57.7% of GFL Environmental shares are held by institutional investors. 6.0% of Casella Waste Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Casella Waste Systems has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Valuation and Earnings
This table compares Casella Waste Systems and GFL Environmental’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Casella Waste Systems||$774.58 million||4.35||$91.11 million||$0.83||79.11|
|GFL Environmental||$3.22 billion||3.37||-$742.69 million||$0.13||255.46|
Casella Waste Systems has higher earnings, but lower revenue than GFL Environmental. Casella Waste Systems is trading at a lower price-to-earnings ratio than GFL Environmental, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Casella Waste Systems and GFL Environmental, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Casella Waste Systems||0||2||2||1||2.80|
Casella Waste Systems currently has a consensus target price of $68.40, suggesting a potential upside of 4.17%. GFL Environmental has a consensus target price of $36.06, suggesting a potential upside of 8.57%. Given GFL Environmental’s higher probable upside, analysts clearly believe GFL Environmental is more favorable than Casella Waste Systems.
Casella Waste Systems beats GFL Environmental on 11 of the 15 factors compared between the two stocks.
Casella Waste Systems Company Profile
Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, and industrial customers. The company provides a range of non-hazardous solid waste services, including collections, transfer stations, and disposal facilities. It also markets recyclable metals, aluminum, plastics, and paper and corrugated cardboard that are processed at its facilities, as well as recyclables purchased from third parties. In addition, the company is involved in commodity brokerage operations. As of April 15, 2021, it owned and/or operated 46 solid waste collection operations, 58 transfer stations, 20 recycling facilities, 8 Subtitle D landfills, 4 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials. The company was founded in 1975 and is headquartered in Rutland, Vermont.
GFL Environmental Company Profile
GFL Environmental Inc. operates as a diversified environmental services company in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation, and liquid waste management services. Its solid waste management business line includes the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste for municipal, residential, and commercial and industrial customers. The company's infrastructure and soil remediation business line provides remediation of contaminated soils, as well as complementary services, including civil, demolition, and excavation and shoring services. Its liquid waste management business collects, manages, transports, processes, and disposes of a range of industrial and commercial liquid wastes, as well as resells liquid waste products. The company was founded in 2007 and is headquartered in Vaughan, Canada.
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