Head-To-Head Analysis: Quad Graphics (NYSE:QUAD) versus Waste Connections (NYSE:WCN)

Waste Connections (NYSE:WCN) and Quad Graphics (NYSE:QUAD) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Waste Connections and Quad Graphics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waste Connections	0	3	14	1	2.89
Quad Graphics	0	2	3	0	2.60

Waste Connections presently has a consensus price target of $199.78, suggesting a potential upside of 30.67%. Quad Graphics has a consensus price target of $12.00, suggesting a potential upside of 28.49%. Given Waste Connections’ stronger consensus rating and higher probable upside, research analysts clearly believe Waste Connections is more favorable than Quad Graphics.

Dividends

Waste Connections pays an annual dividend of $1.40 per share and has a dividend yield of 0.9%. Quad Graphics pays an annual dividend of $0.40 per share and has a dividend yield of 4.3%. Waste Connections pays out 33.7% of its earnings in the form of a dividend. Quad Graphics pays out 63.5% 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. Waste Connections has raised its dividend for 8 consecutive years and Quad Graphics has raised its dividend for 1 consecutive years.

Risk and Volatility

Waste Connections has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Quad Graphics has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Waste Connections and Quad Graphics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waste Connections	10.86%	17.31%	6.62%
Quad Graphics	1.31%	47.90%	4.61%

Institutional and Insider Ownership

86.1% of Waste Connections shares are owned by institutional investors. Comparatively, 39.5% of Quad Graphics shares are owned by institutional investors. 0.3% of Waste Connections shares are owned by insiders. Comparatively, 14.2% of Quad Graphics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Waste Connections and Quad Graphics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waste Connections	$9.47 billion	4.05	$1.08 billion	$4.15	36.84
Quad Graphics	$2.42 billion	0.20	$27.00 million	$0.63	14.82

Waste Connections has higher revenue and earnings than Quad Graphics. Quad Graphics is trading at a lower price-to-earnings ratio than Waste Connections, indicating that it is currently the more affordable of the two stocks.

Summary

Waste Connections beats Quad Graphics on 14 of the 18 factors compared between the two stocks.

About Waste Connections

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.

About Quad Graphics

Quad/Graphics, Inc. provides marketing solutions worldwide. The company operates through United States Print and Related Services, and International segments. It offers printing services, such as retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products; and paper procurement services. The company also provides marketing and other services, including data and analytics, technology solutions, media services, creative and content solutions, managed services, and execution in non-print channels, as well as manufactures ink. It serves blue-chip companies that operate in various industries, and serve businesses and consumers across various industry verticals comprising retail, consumer packaged goods and direct-to-consumer, as well as financial services and health. The company was founded in 1971 and is headquartered in Sussex, Wisconsin.