GFL Environmental (NYSE:GFL) vs. Casella Waste Systems (NASDAQ:CWST) Financial Review

GFL Environmental (NYSE:GFL) and Casella Waste Systems (NASDAQ:CWST) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

57.7% of GFL Environmental shares are owned by institutional investors. Comparatively, 94.3% of Casella Waste Systems shares are owned by institutional investors. 6.0% of Casella Waste Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares GFL Environmental and Casella Waste Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GFL Environmental $3.22 billion 3.37 -$742.69 million $0.13 255.46
Casella Waste Systems $774.58 million 4.35 $91.11 million $0.83 79.11

Casella Waste Systems has lower revenue, but higher earnings 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.

Volatility and Risk

GFL Environmental has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Casella Waste Systems has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares GFL Environmental and Casella Waste Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GFL Environmental -21.35% 1.50% 0.56%
Casella Waste Systems 12.09% 17.54% 4.09%

Analyst Ratings

This is a summary of recent ratings for GFL Environmental and Casella Waste Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GFL Environmental 0 3 8 0 2.73
Casella Waste Systems 0 2 2 1 2.80

GFL Environmental presently has a consensus price target of $36.06, indicating a potential upside of 8.57%. Casella Waste Systems has a consensus price target of $68.40, indicating a potential upside of 4.17%. Given GFL Environmental’s higher possible upside, equities analysts clearly believe GFL Environmental is more favorable than Casella Waste Systems.

Summary

Casella Waste Systems beats GFL Environmental on 11 of the 15 factors compared between the two stocks.

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.

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.

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