Quest Resource (NASDAQ:QRHC – Get Rating) and Waste Management (NYSE:WM – Get Rating) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Risk and Volatility
Quest Resource has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Waste Management has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Insider and Institutional Ownership
30.1% of Quest Resource shares are held by institutional investors. Comparatively, 74.4% of Waste Management shares are held by institutional investors. 23.5% of Quest Resource shares are held by insiders. Comparatively, 0.2% of Waste Management shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Quest Resource and Waste Management’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quest Resource||$155.71 million||0.76||$1.69 million||$0.08||77.88|
|Waste Management||$17.93 billion||3.66||$1.82 billion||$4.30||36.75|
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.
This table compares Quest Resource and Waste Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Quest Resource and Waste Management, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quest Resource presently has a consensus price target of $11.67, suggesting a potential upside of 87.27%. Waste Management has a consensus price target of $155.00, suggesting a potential downside of 1.90%. Given Quest Resource’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Quest Resource is more favorable than Waste Management.
Waste Management beats Quest Resource on 8 of the 14 factors compared between the two stocks.
Quest Resource Company Profile (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.
Waste Management Company Profile (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.
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