Analyzing Clean Harbors (CLH) and Heritage-Crystal Clean (HCCI)

Heritage-Crystal Clean (NASDAQ: HCCI) and Clean Harbors (NYSE:CLH) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

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This is a summary of recent ratings and target prices for Heritage-Crystal Clean and Clean Harbors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage-Crystal Clean 0 1 4 0 2.80
Clean Harbors 1 5 4 0 2.30

Heritage-Crystal Clean currently has a consensus price target of $24.20, indicating a potential upside of 6.84%. Clean Harbors has a consensus price target of $58.33, indicating a potential upside of 19.73%. Given Clean Harbors’ higher possible upside, analysts clearly believe Clean Harbors is more favorable than Heritage-Crystal Clean.

Profitability

This table compares Heritage-Crystal Clean and Clean Harbors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage-Crystal Clean 7.68% 7.15% 5.22%
Clean Harbors 3.42% 1.36% 0.41%

Volatility & Risk

Heritage-Crystal Clean has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Clean Harbors has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Heritage-Crystal Clean and Clean Harbors’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage-Crystal Clean $365.96 million 1.47 $28.12 million $0.68 33.31
Clean Harbors $2.94 billion 0.93 $100.73 million $0.33 147.64

Clean Harbors has higher revenue and earnings than Heritage-Crystal Clean. Heritage-Crystal Clean is trading at a lower price-to-earnings ratio than Clean Harbors, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

59.3% of Heritage-Crystal Clean shares are owned by institutional investors. Comparatively, 93.7% of Clean Harbors shares are owned by institutional investors. 8.6% of Heritage-Crystal Clean shares are owned by company insiders. Comparatively, 8.9% of Clean Harbors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Heritage-Crystal Clean beats Clean Harbors on 7 of the 13 factors compared between the two stocks.

About Heritage-Crystal Clean

Heritage-Crystal Clean, Inc. provides full-service parts cleaning, containerized waste management, used oil collection, vacuum truck services and antifreeze recycling. The Company owns and operates a used oil re-refinery. The Company operates through two segments: Environmental Services and Oil Business. The Company provides hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle maintenance sectors. The Environmental Services segment consists of the Company’s parts cleaning, containerized waste management, vacuum truck services, used antifreeze recycling activities and field services. The Oil Business segment consists of used oil collection activities, sale of recycled fuel oil, re-refining activities, and oil filter removal and disposal services. Through its re-refining process, the Company recycles used oil into lubricant base oil and by-products, and it is a supplier to firms that produce and market finished lubricants.

About Clean Harbors

Clean Harbors, Inc. provides environmental, energy, and industrial services in North America. It operates through Technical Services; Industrial and Field Services; Safety-Kleen; and Oil, Gas and Lodging Services segments. The company's Technical Services segment provides a range of hazardous material management services, including the packaging, collection, transportation, treatment, and disposal of hazardous and non-hazardous waste at its incinerator, landfill, wastewater, and other treatment facilities. Its Industrial and Field Services segment offers industrial and specialty services, such as high-pressure and chemical cleaning, daylighting, production servicing, decoking, pigging, and material processing to refineries, chemical plants, oil sands facilities, pulp and paper mills, and other industrial facilities. This segment also provides environmental cleanup services consisting of tank cleaning, decontamination, remediation, and spill cleanup. The company's Safety-Kleen segment offers parts cleaning, containerized waste, used oil collection, and vacuum services, as well as other environmental services and products, such as degreasers, glass and floor cleaners, hand cleaners, absorbents, windshield washer fluids, mats, and spill kits. This segment also manufactures, formulates, packages, blends, distributes, and markets lubricants. Its Oil, Gas and Lodging Services segment provides surface rental, seismic support, and directional boring services to the energy sector serving oil and gas exploration, and power generation. This segment also offers lodges and remote workforce accommodation facilities, including open lodges, as well as operator and drill camps in Western Canada; and manufactures modular units and wastewater processing plants. The company operates through a network of approximately 465 service locations in 49 states, 9 Canadian provinces, Puerto Rico, and Mexico. Clean Harbors, Inc. was founded in 1980 and is based in Norwell, Massachusetts.

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