Waste Management (NYSE:WM – Get Rating) and Quest Resource (NASDAQ:QRHC – Get Rating) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk and Volatility
Waste Management has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
80.4% of Waste Management shares are owned by institutional investors. Comparatively, 41.9% of Quest Resource shares are owned by institutional investors. 0.2% of Waste Management shares are owned by insiders. Comparatively, 21.9% of Quest Resource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Waste Management and Quest Resource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Waste Management and Quest Resource, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Waste Management presently has a consensus target price of $161.57, suggesting a potential upside of 2.33%. Quest Resource has a consensus target price of $11.67, suggesting a potential upside of 129.21%. Given Quest Resource’s stronger consensus rating and higher possible upside, analysts clearly believe Quest Resource is more favorable than Waste Management.
Earnings & Valuation
This table compares Waste Management and Quest Resource’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Waste Management||$17.93 billion||3.66||$1.82 billion||$4.54||34.78|
|Quest Resource||$155.71 million||0.62||$1.69 million||$0.08||63.63|
Waste Management has higher revenue and earnings than Quest Resource. Waste Management is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.
Waste Management beats Quest Resource on 8 of the 14 factors compared between the two stocks.
About Waste Management (Get Rating)
Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations. As of December 31, 2021, the company owned or operated 255 solid waste landfills; 5 secure hazardous waste landfills; 96 MRFs; and 340 transfer stations. It also provides materials processing and commodities recycling services; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.
About Quest Resource (Get Rating)
Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.
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