Critical Comparison: Republic Services (NYSE:RSG) vs. Quest Resource (NASDAQ:QRHC)

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

Volatility and Risk

Republic Services has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Quest Resource has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Republic Services and Quest Resource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Republic Services 11.54% 15.60% 5.66%
Quest Resource -0.85% 5.81% 2.86%

Earnings & Valuation

This table compares Republic Services and Quest Resource’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Republic Services $11.30 billion 3.62 $1.29 billion $4.22 30.68
Quest Resource $155.71 million 0.60 $1.69 million ($0.09) -54.44

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

Insider and Institutional Ownership

92.8% of Republic Services shares are owned by institutional investors. Comparatively, 41.9% of Quest Resource shares are owned by institutional investors. 0.1% of Republic Services shares are owned by insiders. Comparatively, 21.9% of Quest Resource shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Republic Services and Quest Resource, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Republic Services 0 3 5 1 2.78
Quest Resource 0 0 3 0 3.00

Republic Services presently has a consensus price target of $138.00, suggesting a potential upside of 6.60%. Quest Resource has a consensus price target of $11.67, suggesting a potential upside of 138.10%. Given Quest Resource’s stronger consensus rating and higher probable upside, analysts plainly believe Quest Resource is more favorable than Republic Services.

Summary

Republic Services beats Quest Resource on 11 of the 15 factors compared between the two stocks.

Republic Services Company Profile (Get Rating)

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers. As of December 31, 2021, the company operated through 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling processing centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona.

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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