Comparing Republic Services (RSG) & Veolia Environnement (VEOEY)
Republic Services (NYSE: RSG) and Veolia Environnement (OTCMKTS:VEOEY) are both large-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
This table compares Republic Services and Veolia Environnement’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Republic Services and Veolia Environnement’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Republic Services||$10.04 billion||2.17||$1.28 billion||$2.43||27.09|
|Veolia Environnement||$28.38 billion||0.47||$453.66 million||$1.22||19.40|
Republic Services has higher earnings, but lower revenue than Veolia Environnement. Veolia Environnement is trading at a lower price-to-earnings ratio than Republic Services, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
61.0% of Republic Services shares are owned by institutional investors. Comparatively, 0.4% of Veolia Environnement shares are owned by institutional investors. 0.3% of Republic Services shares are owned by company insiders. Comparatively, 1.0% of Veolia Environnement shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Republic Services pays an annual dividend of $1.38 per share and has a dividend yield of 2.1%. Veolia Environnement pays an annual dividend of $0.71 per share and has a dividend yield of 3.0%. Republic Services pays out 56.8% of its earnings in the form of a dividend. Veolia Environnement pays out 58.2% 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. Republic Services has increased its dividend for 8 consecutive years.
This is a breakdown of recent ratings and recommmendations for Republic Services and Veolia Environnement, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Republic Services presently has a consensus target price of $69.86, suggesting a potential upside of 6.10%. Given Republic Services’ higher probable upside, research analysts clearly believe Republic Services is more favorable than Veolia Environnement.
Volatility & Risk
Republic Services has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Veolia Environnement has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Republic Services beats Veolia Environnement on 12 of the 18 factors compared between the two stocks.
Republic Services Company Profile
Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico. The company's collection services include curbside collection of waste for transport to transfer stations; supply of waste containers; and renting of compactors. It is also involved in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; temporary waste collection services; and provision of landfill services. As of December 31, 2017, the company operated through 343 collection operations, 204 transfer stations, 195 active landfills, 90 recycling centers, and 11 salt water disposal wells, as well as 7 treatment, recovery, and disposal facilities in 40 states and Puerto Rico. It also operated 68 landfill gas and renewable energy projects and had 124 closed landfills. The company was founded in 1996 and is based in Phoenix, Arizona.
Veolia Environnement Company Profile
Veolia Environnement S.A. provides a range of environmental services worldwide. It operates through Water, Waste, and Energy businesses. The Water business integrates drinking water and wastewater activities, such as water distribution and collection, water and wastewater treatment and supply, industrial process water, wastewater sludge management, and recycling and reuse solutions, as well as construction of water treatment plant. It also manufactures water treatment equipment and technologies. The Waste business collects, sorts, processes, disposes, and recycles household, commercial, and industrial wastes. The Energy business produces renewable energy comprising heat and electricity produced from waste and biomass; heat from data centers, wastewater calories, and industrial companies; and develops a range of energy management activities, including heating and cooling networks, thermal and multi-technical services, industrial utilities, installation and maintenance of production equipment, and integration services for the management of buildings. The company was formerly known as Vivendi Environnement and changed its name to Veolia Environnement S.A. in 2003. Veolia Environnement S.A. was founded in 1853 and is headquartered in Paris, France.
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