Comparing Quest Resource (NASDAQ:QRHC) & Avalon (NYSE:AWX)

Avalon (NYSE:AWXGet Rating) and Quest Resource (NASDAQ:QRHCGet Rating) are both small-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

10.7% of Avalon shares are held by institutional investors. Comparatively, 30.1% of Quest Resource shares are held by institutional investors. 20.1% of Avalon shares are held by insiders. Comparatively, 23.5% of Quest Resource shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Avalon and Quest Resource, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avalon 0 0 0 0 N/A
Quest Resource 0 0 3 0 3.00

Quest Resource has a consensus target price of $11.67, indicating a potential upside of 87.27%. Given Quest Resource’s higher possible upside, analysts plainly believe Quest Resource is more favorable than Avalon.

Valuation & Earnings

This table compares Avalon and Quest Resource’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avalon $70.38 million 0.19 $1.97 million $0.50 6.90
Quest Resource $155.71 million 0.76 $1.69 million $0.08 77.88

Avalon has higher earnings, but lower revenue than Quest Resource. Avalon 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 Avalon and Quest Resource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avalon 2.80% 5.10% 2.50%
Quest Resource 1.09% 5.64% 3.16%

Volatility & Risk

Avalon has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Summary

Quest Resource beats Avalon on 10 of the 13 factors compared between the two stocks.

Avalon Company Profile (Get Rating)

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal, and governmental customers in the United States. It operates in Waste Management Services, and Golf and Related Operations segments. The Waste Management Services segment offers hazardous and nonhazardous waste disposal brokerage and management services; and captive landfill management services, as well as engages in the salt water injection well operations. This segment also provides turnkey services, including daily operations, facilities management, and management reporting; and sells construction mats. The Golf and Related Operations segment operates and manages four golf courses and related clubhouses, a hotel, and a travel agency. Its golf and country club facilities provide swimming pools, fitness centers, tennis courts, dining, and banquet and conference facilities, as well as spa services. The company also owns and operates hotel under the brand of The Grand Resort, which provides various facilities, such as hotel, indoor and outdoor swimming pool, bath, fitness center, restaurants, bars, cigar lounge, salon and spa, banquet and conference facilities, and adjoining tennis center. Avalon Holdings Corporation was founded in 1998 and is headquartered in Warren, Ohio.

Quest Resource Company Profile (Get Rating)

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.

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