Republic Services (NYSE:RSG) & ACV Auctions (NYSE:ACVA) Critical Review

ACV Auctions (NYSE:ACVA) and Republic Services (NYSE:RSG) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Volatility and Risk

ACV Auctions has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Republic Services has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Insider and Institutional Ownership

88.6% of ACV Auctions shares are held by institutional investors. Comparatively, 57.7% of Republic Services shares are held by institutional investors. 4.4% of ACV Auctions shares are held by company insiders. Comparatively, 0.1% of Republic Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ACV Auctions and Republic Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACV Auctions	4	7	5	0	2.06
Republic Services	0	9	13	0	2.59

ACV Auctions currently has a consensus target price of $9.70, indicating a potential downside of 7.62%. Republic Services has a consensus target price of $243.73, indicating a potential upside of 3.53%. Given Republic Services’ stronger consensus rating and higher possible upside, analysts clearly believe Republic Services is more favorable than ACV Auctions.

Valuation and Earnings

This table compares ACV Auctions and Republic Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACV Auctions	$801.34 million	2.23	-$66.14 million	($0.36)	-29.17
Republic Services	$16.89 billion	4.27	$2.16 billion	$7.06	33.35

Republic Services has higher revenue and earnings than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than Republic Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ACV Auctions and Republic Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACV Auctions	-7.88%	-6.01%	-2.22%
Republic Services	N/A	N/A	N/A

Summary

Republic Services beats ACV Auctions on 11 of the 14 factors compared between the two stocks.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

About Republic Services

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.