Comparing GFL Environmental (NYSE:GFL) and Avalon (NYSE:AWX)

GFL Environmental (NYSE:GFLGet Rating) and Avalon (NYSE:AWXGet Rating) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares GFL Environmental and Avalon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GFL Environmental -9.39% 2.80% 0.91%
Avalon 2.80% 5.10% 2.50%

Earnings & Valuation

This table compares GFL Environmental and Avalon’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GFL Environmental $4.41 billion 2.28 -$484.17 million ($1.26) -23.91
Avalon $70.38 million 0.18 $1.97 million $0.50 6.40

Avalon has lower revenue, but higher earnings than GFL Environmental. GFL Environmental is trading at a lower price-to-earnings ratio than Avalon, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for GFL Environmental and Avalon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GFL Environmental 0 1 9 0 2.90
Avalon 0 0 0 0 N/A

GFL Environmental currently has a consensus target price of $45.94, indicating a potential upside of 52.49%. Given GFL Environmental’s higher possible upside, equities research analysts plainly believe GFL Environmental is more favorable than Avalon.

Institutional and Insider Ownership

58.8% of GFL Environmental shares are owned by institutional investors. Comparatively, 10.7% of Avalon shares are owned by institutional investors. 20.1% of Avalon shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

GFL Environmental has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Avalon has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Summary

Avalon beats GFL Environmental on 7 of the 13 factors compared between the two stocks.

About GFL Environmental (Get Rating)

GFL Environmental Inc. operates as a diversified environmental services company in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation, and liquid waste management services. Its solid waste management business line includes the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste for municipal, residential, and commercial and industrial customers. The company's infrastructure and soil remediation business line provides remediation of contaminated soils, as well as complementary services, including civil, demolition, and excavation and shoring services. Its liquid waste management business collects, manages, transports, processes, and disposes of a range of industrial and commercial liquid wastes, as well as resells liquid waste products. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.

About Avalon (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.

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