Reviewing GFL Environmental (NYSE:GFL) and Black Diamond Group (OTCMKTS:BDIMF)

Black Diamond Group (OTCMKTS:BDIMF – Get Free Report) and GFL Environmental (NYSE:GFL – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Risk & Volatility

Black Diamond Group has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Black Diamond Group and GFL Environmental, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Diamond Group 0 0 1 0 3.00
GFL Environmental 2 2 9 0 2.54

GFL Environmental has a consensus target price of $57.67, suggesting a potential upside of 37.09%. Given GFL Environmental’s higher possible upside, analysts plainly believe GFL Environmental is more favorable than Black Diamond Group.

Institutional & Insider Ownership

64.7% of GFL Environmental shares are owned by institutional investors. 25.2% of Black Diamond Group shares are owned by company insiders. Comparatively, 8.7% of GFL Environmental shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Black Diamond Group pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. GFL Environmental pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Black Diamond Group pays out 52.0% of its earnings in the form of a dividend. GFL Environmental pays out -13.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. GFL Environmental has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Black Diamond Group and GFL Environmental”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Black Diamond Group $326.99 million 3.03 $24.93 million $0.25 58.00
GFL Environmental $4.73 billion 3.21 $2.74 billion ($0.53) -79.37

GFL Environmental has higher revenue and earnings than Black Diamond Group. GFL Environmental is trading at a lower price-to-earnings ratio than Black Diamond Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Black Diamond Group and GFL Environmental’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Diamond Group 4.60% 7.24% 2.96%
GFL Environmental -3.28% 4.14% 1.55%

Summary

Black Diamond Group beats GFL Environmental on 9 of the 17 factors compared between the two stocks.

About Black Diamond Group

(Get Free Report)

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.

About GFL Environmental

(Get Free Report)

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.

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