Critical Review: Debt Resolve (OTCMKTS:DRSV) & GFL Environmental (NYSE:GFL)

GFL Environmental (NYSE:GFL) and Debt Resolve (OTCMKTS:DRSV) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations and price targets for GFL Environmental and Debt Resolve, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	2	2	11	0	2.60
Debt Resolve	0	0	0	0	0.00

GFL Environmental currently has a consensus target price of $54.75, suggesting a potential upside of 31.94%. Given GFL Environmental’s stronger consensus rating and higher probable upside, equities analysts clearly believe GFL Environmental is more favorable than Debt Resolve.

Valuation & Earnings

This table compares GFL Environmental and Debt Resolve”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GFL Environmental	$4.73 billion	3.16	$2.74 billion	($0.53)	-78.29
Debt Resolve	N/A	N/A	N/A	N/A	N/A

GFL Environmental has higher revenue and earnings than Debt Resolve.

Institutional and Insider Ownership

64.7% of GFL Environmental shares are held by institutional investors. 8.7% of GFL Environmental shares are held by insiders. Comparatively, 56.1% of Debt Resolve shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares GFL Environmental and Debt Resolve’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	-3.28%	4.14%	1.55%
Debt Resolve	N/A	N/A	N/A

Summary

GFL Environmental beats Debt Resolve on 7 of the 9 factors compared between the two stocks.

About GFL Environmental

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.

About Debt Resolve

Debt Resolve, Inc. provides software solutions to consumer lenders or those collecting consumer loans using Software-as-a-Service model in the United States. Its solutions facilitate Web-based payments or the resolution of delinquent or defaulted consumer debt. The company also provides services in the student loan document preparation industry. It serves consumer banks, collection agencies, and the buyers of defaulted debt. The company was formerly known as Lombardia Acquisition Corp. and changed its name to Debt Resolve, Inc. in May 2003. Debt Resolve, Inc. was founded in 1997 and is based in Hawthorne, New York. On July 29, 2020, the voluntary petition of Debt Resolve, Inc. for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on February 3, 2020.