Republic Services (RSG) & The Competition Critical Contrast

Republic Services (NYSE:RSG) is one of 39 publicly-traded companies in the “Waste Removal Svcs” industry, but how does it contrast to its peers? We will compare Republic Services to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Dividends

Republic Services pays an annual dividend of $2.32 per share and has a dividend yield of 0.9%. Republic Services pays out 35.0% of its earnings in the form of a dividend. As a group, “Waste Removal Svcs” companies pay a dividend yield of 1.1% and pay out 50.1% of their earnings in the form of a dividend. Republic Services has increased its dividend for 22 consecutive years.

Risk & Volatility

Republic Services has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Republic Services’ peers have a beta of 0.62, suggesting that their average share price is 38% less volatile than the S&P 500.

Profitability

This table compares Republic Services and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Services	12.88%	18.28%	6.41%
Republic Services Competitors	-97.71%	-458.29%	-3.74%

Analyst Ratings

This is a breakdown of current ratings for Republic Services and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Services	0	9	12	2	2.70
Republic Services Competitors	323	1115	1891	129	2.53

Republic Services currently has a consensus price target of $252.68, indicating a potential upside of 1.85%. As a group, “Waste Removal Svcs” companies have a potential upside of 13.68%. Given Republic Services’ peers higher probable upside, analysts clearly believe Republic Services has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Republic Services and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Republic Services	$16.03 billion	$2.04 billion	37.42
Republic Services Competitors	$3.26 billion	$263.08 million	31.29

Republic Services has higher revenue and earnings than its peers. Republic Services is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

57.7% of Republic Services shares are held by institutional investors. Comparatively, 57.0% of shares of all “Waste Removal Svcs” companies are held by institutional investors. 0.1% of Republic Services shares are held by insiders. Comparatively, 12.6% of shares of all “Waste Removal Svcs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Republic Services beats its peers on 11 of the 15 factors compared.

Republic Services Company Profile

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.