GFL Environmental (NYSE:GFL) & DiDi Global (OTCMKTS:DIDIY) Critical Analysis

DiDi Global (OTCMKTS:DIDIY) and GFL Environmental (NYSE:GFL) are both large-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares DiDi Global and GFL Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DiDi Global	0.31%	2.16%	1.31%
GFL Environmental	-3.28%	4.14%	1.55%

Analyst Ratings

This is a breakdown of current ratings and price targets for DiDi Global and GFL Environmental, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DiDi Global	0	1	2	0	2.67
GFL Environmental	2	2	11	0	2.60

DiDi Global presently has a consensus target price of $10.00, indicating a potential upside of 168.82%. GFL Environmental has a consensus target price of $54.25, indicating a potential upside of 27.51%. Given DiDi Global’s stronger consensus rating and higher probable upside, analysts plainly believe DiDi Global is more favorable than GFL Environmental.

Volatility & Risk

DiDi Global has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Institutional and Insider Ownership

1.8% of DiDi Global shares are held by institutional investors. Comparatively, 64.7% of GFL Environmental shares are held by institutional investors. 9.5% of DiDi Global shares are held by company insiders. Comparatively, 8.7% of GFL Environmental shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares DiDi Global and GFL Environmental”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DiDi Global	$31.54 billion	0.54	$138.08 million	($0.02)	-186.00
GFL Environmental	$4.73 billion	3.24	$2.74 billion	($0.53)	-80.28

GFL Environmental has lower revenue, but higher earnings than DiDi Global. DiDi Global is trading at a lower price-to-earnings ratio than GFL Environmental, indicating that it is currently the more affordable of the two stocks.

Summary

GFL Environmental beats DiDi Global on 8 of the 14 factors compared between the two stocks.

About DiDi Global

DiDi Global Inc. operates a mobility technology platform that provides ride hailing and other services in the People's Republic of China, Brazil, Mexico, and internationally. It offers ride hailing, taxi hailing, chauffeur, hitch, and other forms of shared mobility services; auto solutions comprising leasing, refueling, and maintenance and repair services; electric vehicle leasing services; and bike and e-bike sharing, intra-city freight, food delivery, and financial services. The company was formerly known as Xiaoju Kuaizhi Inc. and changed its name to DiDi Global Inc. in June 2021. DiDi Global Inc. was founded in 2012 and is headquartered in Beijing, China.

About GFL Environmental

GFL Environmental Inc. offers non-hazardous solid waste management and environmental services in Canada and the United States. It offers solid waste management, liquid waste management, and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, and commercial, and industrial customers. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.