Waste Connections vs Waste Management Which Is More Lucrative?

Waste Connections and Waste Management are two leading companies in the waste management industry. Both companies provide a range of services related to waste collection, recycling, and disposal. Waste Connections has seen steady growth in recent years, while Waste Management is a larger, more established company with a strong track record. Investors looking to invest in waste management stocks should consider factors such as financial performance, market presence, and growth potential when deciding between Waste Connections and Waste Management stocks.

Waste Connections or Waste Management?

When comparing Waste Connections 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 Waste Connections 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. Waste Connections has a dividend yield of 0.8%, while Waste Management has a dividend yield of 1.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Waste Connections reports a 5-year dividend growth of 19.00% year and a payout ratio of 31.56%. 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 Waste Connections P/E ratio at 50.86 and Waste Management's P/E ratio at 33.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Waste Connections P/B ratio is 5.79 while Waste Management's P/B ratio is 11.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Waste Connections has seen a 5-year revenue growth of 0.70%, while Waste Management's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Waste Connections's ROE at 11.87% 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 $184.59 for Waste Connections and $223.39 for Waste Management. Over the past year, Waste Connections's prices ranged from $129.31 to $187.54, with a yearly change of 45.03%. Waste Management's prices fluctuated between $168.73 and $226.50, with a yearly change of 34.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.