Financial Comparison: Waste Connections (WCN) and Its Rivals

Waste Connections (NYSE: WCN) is one of 21 public companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it compare to its peers? We will compare Waste Connections to similar companies based on the strength of its risk, profitability, valuation, earnings, analyst recommendations, dividends and institutional ownership.

Institutional & Insider Ownership

82.6% of Waste Connections shares are held by institutional investors. Comparatively, 50.1% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 0.6% of Waste Connections shares are held by insiders. Comparatively, 13.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Waste Connections pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Waste Connections pays out 42.4% of its earnings in the form of a dividend. As a group, “Waste Management, Disposal & Recycling Services” companies pay a dividend yield of 1.9% and pay out 114.5% of their earnings in the form of a dividend. Waste Connections has increased its dividend for 7 consecutive years.

Profitability

This table compares Waste Connections and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waste Connections 7.68% 9.59% 4.80%
Waste Connections Competitors -327.30% -70.09% -12.02%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Waste Connections $3.38 billion $246.54 million 53.14
Waste Connections Competitors $866.17 million $36.04 million -354.90

Waste Connections has higher revenue and earnings than its peers. Waste Connections is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Waste Connections has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Waste Connections’ peers have a beta of 0.65, suggesting that their average share price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Waste Connections and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waste Connections 0 1 7 1 3.00
Waste Connections Competitors 44 277 585 14 2.62

Waste Connections currently has a consensus target price of $77.74, indicating a potential upside of 10.82%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 10.13%. Given Waste Connections’ stronger consensus rating and higher probable upside, research analysts plainly believe Waste Connections is more favorable than its peers.

Summary

Waste Connections beats its peers on 12 of the 15 factors compared.

Waste Connections Company Profile

Waste Connections, Inc. is a solid waste services company in North America. The Company provides waste collection, transfer, disposal and recycling services in markets in the United States and Canada. The Company operates through six segments: Southern segment, Western segment, Eastern segment, Canada segment, Central segment and E&P segment. Through its R360 Environmental Solutions subsidiary, it also provides non-hazardous exploration and production, or E&P, waste treatment, recovery and disposal services in various natural resource producing areas in the United States. It also provides intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. As of December 31, 2016, it served residential, commercial, industrial and exploration and production (E&P) customers in 40 states and the District of Columbia in the United States and five provinces in Canada.

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