Waste Connections (NYSE: WCN) is one of 20 publicly-traded companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it weigh in compared to its rivals? We will compare Waste Connections to similar businesses based on the strength of its profitability, earnings, institutional ownership, risk, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

83.0% of Waste Connections shares are held by institutional investors. Comparatively, 53.0% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 0.7% of Waste Connections shares are held by insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Waste Connections and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Waste Connections $3.38 billion $246.54 million 52.20
Waste Connections Competitors $850.65 million $28.19 million 151.71

Waste Connections has higher revenue and earnings than its rivals. Waste Connections is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Waste Connections and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waste Connections 0 1 7 1 3.00
Waste Connections Competitors 46 278 586 14 2.61

Waste Connections currently has a consensus target price of $77.74, suggesting a potential upside of 12.81%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 8.02%. Given Waste Connections’ stronger consensus rating and higher possible upside, analysts plainly believe Waste Connections is more favorable than its rivals.

Risk & Volatility

Waste Connections has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Waste Connections’ rivals have a beta of 0.72, suggesting that their average share price is 28% less volatile than the S&P 500.

Dividends

Waste Connections pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Waste Connections pays out 42.4% of its earnings in the form of a dividend. As a group, “Waste Management, Disposal & Recycling Services” companies pay a dividend yield of 1.8% and pay out 98.5% of their earnings in the form of a dividend. Waste Connections has increased its dividend for 7 consecutive years.

Profitability

This table compares Waste Connections and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waste Connections 7.68% 9.59% 4.80%
Waste Connections Competitors -280.96% -68.14% -14.45%

Summary

Waste Connections beats its rivals on 11 of the 15 factors compared.

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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