Comparing GFL Environmental (GFL) and Its Peers

GFL Environmental (NYSE:GFL) is one of 354 public companies in the “Commercial Services & Supplies” industry, but how does it compare to its peers? We will compare GFL Environmental to similar businesses based on the strength of its dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares GFL Environmental and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GFL Environmental	$4.73 billion	$2.74 billion	-52.60
GFL Environmental Competitors	$2.45 billion	$140.58 million	13.46

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

Profitability

This table compares GFL Environmental and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	-4.93%	3.84%	1.45%
GFL Environmental Competitors	-49.94%	-119.11%	-1.30%

Insider and Institutional Ownership

64.7% of GFL Environmental shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 8.7% of GFL Environmental shares are owned by insiders. Comparatively, 17.5% of shares of all “Commercial Services & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

GFL Environmental pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. GFL Environmental pays out -8.9% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 64.7% of their earnings in the form of a dividend. GFL Environmental has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GFL Environmental and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	2	3	10	0	2.53
GFL Environmental Competitors	1906	6251	9034	665	2.47

GFL Environmental presently has a consensus target price of $57.33, indicating a potential upside of 37.97%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.07%. Given GFL Environmental’s stronger consensus rating and higher probable upside, equities analysts plainly believe GFL Environmental is more favorable than its peers.

Risk and Volatility

GFL Environmental has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, GFL Environmental’s peers have a beta of 2.50, indicating that their average stock price is 150% more volatile than the S&P 500.

Summary

GFL Environmental beats its peers on 10 of the 15 factors compared.

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.