Waste Management vs Republic Services

Waste Management and Republic Services are two of the largest waste management companies in the United States. Investors often compare the two companies when considering investments in the waste management sector. Waste Management has a larger market capitalization and revenue, while Republic Services has a higher dividend yield. Both companies have experienced steady growth and profitability in recent years, making them attractive options for investors looking for stable and environmentally conscious investments in the waste management industry.

Waste Management or Republic Services?

When comparing Waste Management and Republic Services, 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 Management and Republic Services.

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 Management has a dividend yield of 1.73%, while Republic Services has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 46.07%. On the other hand, Republic Services reports a 5-year dividend growth of 7.42% year and a payout ratio of 35.11%.

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 Management P/E ratio at 33.72 and Republic Services's P/E ratio at 34.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Waste Management P/B ratio is 11.51 while Republic Services's P/B ratio is 5.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Waste Management has seen a 5-year revenue growth of 0.45%, while Republic Services's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Waste Management's ROE at 35.84% and Republic Services's ROE at 17.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $213.43 for Waste Management and $206.03 for Republic Services. Over the past year, Waste Management's prices ranged from $153.95 to $225.00, with a yearly change of 46.15%. Republic Services's prices fluctuated between $142.65 and $208.69, with a yearly change of 46.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.