Head to Head Analysis: Casella Waste Systems (CWST) vs. The Competition

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

Profitability

This table compares Casella Waste Systems and its peers’ 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 -280.86% -67.94% -14.36%

Volatility and Risk

Casella Waste Systems has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Casella Waste Systems’ peers have a beta of 0.71, indicating that their average stock price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

79.3% 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 company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Casella Waste Systems $565.03 million -$6.84 million -17.71
Casella Waste Systems Competitors $850.65 million $28.19 million 172.30

Casella Waste Systems’ peers have higher revenue and earnings than Casella Waste Systems. Casella Waste Systems 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casella Waste Systems 0 2 2 0 2.50
Casella Waste Systems Competitors 47 283 595 15 2.61

Casella Waste Systems presently has a consensus target price of $17.00, indicating a potential downside of 26.15%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 5.67%. Given Casella Waste Systems’ peers stronger consensus rating and higher probable upside, analysts clearly believe Casella Waste Systems has less favorable growth aspects than its peers.

Summary

Casella Waste Systems peers beat Casella Waste Systems on 8 of the 13 factors compared.

About Casella Waste Systems

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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