Waste Management (NYSE:WM) vs. TOMI Environmental Solutions (NASDAQ:TOMZ) Financial Review

TOMI Environmental Solutions (NASDAQ:TOMZ) and Waste Management (NYSE:WM) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares TOMI Environmental Solutions and Waste Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOMI Environmental Solutions	-43.18%	-22.42%	-11.32%
Waste Management	11.36%	34.37%	6.91%

Institutional & Insider Ownership

4.8% of TOMI Environmental Solutions shares are owned by institutional investors. Comparatively, 80.4% of Waste Management shares are owned by institutional investors. 23.9% of TOMI Environmental Solutions shares are owned by insiders. Comparatively, 0.2% of Waste Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

TOMI Environmental Solutions has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Waste Management has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares TOMI Environmental Solutions and Waste Management”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOMI Environmental Solutions	$7.74 million	2.60	-$4.48 million	($0.17)	-5.91
Waste Management	$22.06 billion	4.23	$2.75 billion	$6.74	34.36

Waste Management has higher revenue and earnings than TOMI Environmental Solutions. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than Waste Management, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TOMI Environmental Solutions and Waste Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOMI Environmental Solutions	0	0	1	0	3.00
Waste Management	0	8	12	2	2.73

TOMI Environmental Solutions currently has a consensus target price of $3.50, indicating a potential upside of 248.26%. Waste Management has a consensus target price of $254.3529, indicating a potential upside of 9.83%. Given TOMI Environmental Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TOMI Environmental Solutions is more favorable than Waste Management.

Summary

Waste Management beats TOMI Environmental Solutions on 11 of the 15 factors compared between the two stocks.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.

About Waste Management

Waste Management, Inc., through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns and operates transfer stations, as well as owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity. As of December 31, 2022, the company owned or operated 254 solid waste landfills, five secure hazardous waste landfills, 97 MRFs, and 337 transfer stations. It also provides materials processing and commodities recycling services at its MRFs, where cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.