Contrasting Waste Management (NYSE:WM) & Quest Resource (NASDAQ:QRHC)

Quest Resource (NASDAQ:QRHCGet Rating) and Waste Management (NYSE:WMGet Rating) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

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
Quest Resource 1.09% 5.64% 3.16%
Waste Management 10.13% 28.14% 7.05%

Valuation & Earnings

This table compares Quest Resource and Waste Management’s 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 0.69 $1.69 million $0.08 70.38
Waste Management $17.93 billion 3.75 $1.82 billion $4.30 37.64

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.

Risk & Volatility

Quest Resource has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Waste Management has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent 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 0 0 3 0 3.00
Waste Management 0 6 2 0 2.25

Quest Resource currently has a consensus price target of $11.67, suggesting a potential upside of 107.22%. Waste Management has a consensus price target of $155.00, suggesting a potential downside of 4.23%. Given Quest Resource’s stronger consensus rating and higher probable upside, analysts clearly believe Quest Resource is more favorable than Waste Management.

Institutional & Insider 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 company insiders. Comparatively, 0.2% of Waste Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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 Corp. engages in the provision of reuse, recycling, and disposal services. It focuses on the waste streams and recyclables from big box, food chain, and other retailers, automotive repair, maintenance, and tire operations, truck and bus fleet operators, manufacturing plants, multi-family and commercial properties, and construction and demolition projects. The company was founded in July 2002 and is headquartered in The Colony, TX.

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.

Receive News & Ratings for Quest Resource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Quest Resource and related companies with MarketBeat.com's FREE daily email newsletter.