GFL vs Waste Management Which Offers More Value?

Green for Life (GFL) and Waste Management are two prominent companies in the waste management industry, but they differ in their approaches and business models. GFL is known for its focus on sustainability and innovation, while Waste Management has a more traditional approach to waste disposal. Both companies have seen growth in recent years, but investors should carefully consider factors such as market trends, regulatory changes, and company performance before deciding on where to invest.

GFL or Waste Management?

When comparing GFL 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 GFL 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. GFL 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. GFL 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 GFL P/E ratio at -13.38 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. GFL P/B ratio is 0.43 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, GFL has seen a 5-year revenue growth of -1.00%, while Waste Management's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GFL's ROE at -3.13% 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 ₹97.20 for GFL and $212.21 for Waste Management. Over the past year, GFL's prices ranged from ₹66.00 to ₹125.69, with a yearly change of 90.44%. 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.