Alta vs Waste Management Which Is a Smarter Choice?

Alta and Waste Management are two prominent companies in the waste management industry, but they exhibit notably different business models and financial performances. Alta is a growing player in the industry, focusing on technology-driven solutions and innovative waste disposal methods, while Waste Management is an established market leader with a wide range of services and a strong financial track record. Investors looking to capitalize on the potential growth in the waste management sector may find both companies appealing, but must carefully consider their individual strengths and weaknesses.

Alta or Waste Management?

When comparing Alta and Waste Management, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alta and Waste Management.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alta has a dividend yield of -%, while Waste Management has a dividend yield of 1.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 45.06%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alta P/E ratio at 2.24 and Waste Management's P/E ratio at 32.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alta P/B ratio is 0.16 while Waste Management's P/B ratio is 10.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alta has seen a 5-year revenue growth of -0.41%, while Waste Management's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alta's ROE at 7.06% and Waste Management's ROE at 35.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł2.13 for Alta and $212.21 for Waste Management. Over the past year, Alta's prices ranged from zł1.53 to zł3.59, with a yearly change of 134.64%. Waste Management's prices fluctuated between $173.01 and $230.39, with a yearly change of 33.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.