Critical Review: Casella Waste Systems (CWST) vs. Its Competitors

Casella Waste Systems (NASDAQ: CWST) is one of 20 public companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it compare to its rivals? We will compare Casella Waste Systems to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.

Institutional & Insider Ownership

80.9% of Casella Waste Systems shares are held by institutional investors. Comparatively, 52.2% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 11.5% of Casella Waste Systems shares are held by insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Casella Waste Systems has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Casella Waste Systems’ rivals have a beta of 0.64, suggesting that their average share price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares Casella Waste Systems and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Casella Waste Systems $565.03 million -$6.84 million -14.89
Casella Waste Systems Competitors $850.65 million $28.19 million -384.10

Casella Waste Systems’ rivals have higher revenue and earnings than Casella Waste Systems. Casella Waste Systems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Casella Waste Systems and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casella Waste Systems -9.09% -56.99% 4.28%
Casella Waste Systems Competitors -281.27% -69.54% -14.78%

Analyst Ratings

This is a summary of recent ratings for Casella Waste Systems and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casella Waste Systems 0 3 2 0 2.40
Casella Waste Systems Competitors 44 278 586 14 2.62

Casella Waste Systems currently has a consensus price target of $16.60, suggesting a potential downside of 14.26%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 8.82%. Given Casella Waste Systems’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Casella Waste Systems has less favorable growth aspects than its rivals.

Summary

Casella Waste Systems rivals beat Casella Waste Systems on 7 of the 13 factors compared.

Casella Waste Systems Company Profile

Casella Waste Systems, Inc. is a solid waste services company. The Company provides resource management services to residential, commercial, municipal and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services. It manages its solid waste operations on a geographic basis through two regional operating segments: Eastern and Western regions, each of which provides a range of solid waste services, and its recycling and commodity brokerage operations through its Recycling segment. Organics services, ancillary operations and industrial services are included in its Other segment. As of January 31, 2017, the Company owned and/or operated 32 solid waste collection operations, 46 transfer stations, 18 recycling facilities, nine Subtitle D landfills, four landfill gas-to-energy facilities and one landfill permitted to accept construction and demolition (C&D) materials.

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