Financial Analysis: Avalon (NYSE:AWX) and GFL Environmental (NYSE:GFL)

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

Valuation and Earnings

This table compares Avalon and GFL Environmental’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avalon $70.38 million 0.17 $1.97 million $0.50 6.10
GFL Environmental $4.41 billion 2.05 -$484.17 million ($0.72) -37.12

Avalon has higher earnings, but lower revenue 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.

Profitability

This table compares Avalon and GFL Environmental’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%
GFL Environmental -4.68% 2.93% 0.94%

Institutional and Insider Ownership

10.7% of Avalon shares are owned by institutional investors. Comparatively, 71.0% of GFL Environmental shares are owned by institutional investors. 20.1% of Avalon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Avalon has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Avalon and GFL Environmental, as reported by MarketBeat.com.

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

GFL Environmental has a consensus price target of $45.50, indicating a potential upside of 70.22%. Given GFL Environmental’s higher probable upside, analysts clearly believe GFL Environmental is more favorable than Avalon.

Summary

Avalon beats GFL Environmental on 7 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.

GFL Environmental Company Profile (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.

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