Covanta Holding Corporation (NYSE: CVA) is one of 23 public companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it contrast to its peers? We will compare Covanta Holding Corporation to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Institutional and Insider Ownership

96.5% of Covanta Holding Corporation shares are held by institutional investors. Comparatively, 49.1% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 11.6% of Covanta Holding Corporation shares are held by insiders. Comparatively, 13.2% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Covanta Holding Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covanta Holding Corporation 1 0 6 0 2.71
Covanta Holding Corporation Competitors 44 277 584 14 2.62

Covanta Holding Corporation presently has a consensus target price of $17.79, indicating a potential upside of 14.56%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 10.03%. Given Covanta Holding Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Covanta Holding Corporation is more favorable than its peers.

Profitability

This table compares Covanta Holding Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covanta Holding Corporation -3.68% -12.66% -1.11%
Covanta Holding Corporation Competitors -295.77% -66.26% -11.64%

Valuation & Earnings

This table compares Covanta Holding Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Covanta Holding Corporation $1.70 billion -$4.00 million -31.05
Covanta Holding Corporation Competitors $866.17 million $36.04 million -364.78

Covanta Holding Corporation has higher revenue, but lower earnings than its peers. Covanta Holding Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Covanta Holding Corporation has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Covanta Holding Corporation’s peers have a beta of 0.66, suggesting that their average share price is 34% less volatile than the S&P 500.

Dividends

Covanta Holding Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 6.4%. Covanta Holding Corporation pays out -200.0% of its earnings in the form of a dividend. As a group, “Waste Management, Disposal & Recycling Services” companies pay a dividend yield of 1.9% and pay out 114.5% of their earnings in the form of a dividend. Covanta Holding Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Covanta Holding Corporation beats its peers on 11 of the 14 factors compared.

Covanta Holding Corporation Company Profile

Covanta Holding Corporation is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. The Company operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada. Outside of North America, the Company is constructing an energy-from-waste (EfW) facility in Dublin, Ireland. The Company holds interests in an EfW facility in Italy and an infrastructure business in China, which is engaged in EfW operations. These EfW projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the EfW process.

Receive News & Stock Ratings for Covanta Holding Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Covanta Holding Corporation and related stocks with our FREE daily email newsletter.