Advanced Disposal Services (ADSW) vs. Waste Connections (WCN) Head-To-Head Comparison
Advanced Disposal Services (NYSE: ADSW) and Waste Connections (NYSE:WCN) are both mid-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Waste Connections pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Advanced Disposal Services does not pay a dividend. Waste Connections pays out 42.4% of its earnings in the form of a dividend. Waste Connections has increased its dividend for 7 consecutive years.
This is a breakdown of current ratings and recommmendations for Advanced Disposal Services and Waste Connections, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Disposal Services||0||3||5||0||2.63|
Advanced Disposal Services currently has a consensus target price of $25.71, indicating a potential upside of 11.75%. Waste Connections has a consensus target price of $77.74, indicating a potential upside of 11.94%. Given Waste Connections’ stronger consensus rating and higher probable upside, analysts clearly believe Waste Connections is more favorable than Advanced Disposal Services.
Earnings & Valuation
This table compares Advanced Disposal Services and Waste Connections’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Advanced Disposal Services||$1.40 billion||1.45||-$30.40 million||($0.28)||-82.18|
|Waste Connections||$3.38 billion||5.42||$246.54 million||$1.32||52.61|
Waste Connections has higher revenue and earnings than Advanced Disposal Services. Advanced Disposal Services is trading at a lower price-to-earnings ratio than Waste Connections, indicating that it is currently the more affordable of the two stocks.
This table compares Advanced Disposal Services and Waste Connections’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Disposal Services||-1.61%||5.84%||1.41%|
Institutional & Insider Ownership
95.1% of Advanced Disposal Services shares are owned by institutional investors. Comparatively, 82.6% of Waste Connections shares are owned by institutional investors. 1.2% of Advanced Disposal Services shares are owned by insiders. Comparatively, 0.7% of Waste Connections shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Waste Connections beats Advanced Disposal Services on 13 of the 17 factors compared between the two stocks.
About Advanced Disposal Services
Advanced Disposal Services, Inc. is an integrated provider of non-hazardous solid waste collection, transfer, recycling and disposal services operating primarily in secondary markets or under exclusive arrangements. The Company’s segments include South, East, Midwest and Corporate. As of December 31, 2016, the Company had its presence in 16 states across the Midwest, South and East regions of the United States, as well as in the Commonwealth of the Bahamas, served approximately 2.7 million residential customers and over 200,000 commercial and industrial (C&I) customers through its network of 90 collection operations, 72 transfer stations, 21 owned or operated recycling facilities and 39 owned or operated active landfills. The Company’s vertically integrated environmental services operations can be classified into three lines of business: collection services, disposal services and recycling services. The disposal services include transfer stations and landfills.
About Waste Connections
Waste Connections, Inc. is a solid waste services company in North America. The Company provides waste collection, transfer, disposal and recycling services in markets in the United States and Canada. The Company operates through six segments: Southern segment, Western segment, Eastern segment, Canada segment, Central segment and E&P segment. Through its R360 Environmental Solutions subsidiary, it also provides non-hazardous exploration and production, or E&P, waste treatment, recovery and disposal services in various natural resource producing areas in the United States. It also provides intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. As of December 31, 2016, it served residential, commercial, industrial and exploration and production (E&P) customers in 40 states and the District of Columbia in the United States and five provinces in Canada.
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