Comparing Quest Resource (NASDAQ:QRHC) & Waste Connections (NYSE:WCN)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Quest Resource and Waste Connections, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quest Resource 0 0 3 0 3.00
Waste Connections 0 1 7 1 3.00

Quest Resource presently has a consensus target price of $11.67, indicating a potential upside of 102.20%. Waste Connections has a consensus target price of $140.50, indicating a potential upside of 0.50%. Given Quest Resource’s higher probable upside, research analysts plainly believe Quest Resource is more favorable than Waste Connections.

Valuation & Earnings

This table compares Quest Resource and Waste Connections’ 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 0.71 $1.69 million $0.08 72.13
Waste Connections $6.15 billion 5.84 $618.05 million $2.37 58.99

Waste Connections has higher revenue and earnings than Quest Resource. Waste Connections is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Quest Resource and Waste Connections’ 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 Connections 10.05% 12.23% 5.93%

Insider & Institutional Ownership

30.1% of Quest Resource shares are held by institutional investors. Comparatively, 81.8% of Waste Connections shares are held by institutional investors. 23.5% of Quest Resource shares are held by company insiders. Comparatively, 0.3% of Waste Connections shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Quest Resource has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Waste Connections has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Summary

Waste Connections beats Quest Resource on 10 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 Connections Company Profile (Get Rating)

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company also owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. As of December 31, 2021, it owned 334 solid waste collection operations; 142 transfer stations; 61 municipal solid waste (MSW) landfills; 12 E&P waste landfills; 14 non-MSW landfills; 71 recycling operations; 4 intermodal operations; 23 E&P liquid waste injection wells; and 19 E&P waste treatment and oil recovery facilities. The company also operates an additional 53 transfer stations, 10 MSW landfills, and 2 intermodal operations. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.

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