Select Water Solutions (NYSE:WTTR) and Republic Services (NYSE:RSG) Head-To-Head Comparison

Republic Services (NYSE:RSG) and Select Water Solutions (NYSE:WTTR) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

Republic Services pays an annual dividend of $2.50 per share and has a dividend yield of 1.2%. Select Water Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 2.4%. Republic Services pays out 37.0% of its earnings in the form of a dividend. Select Water Solutions pays out 90.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Republic Services has raised its dividend for 22 consecutive years and Select Water Solutions has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

57.7% of Republic Services shares are owned by institutional investors. Comparatively, 81.7% of Select Water Solutions shares are owned by institutional investors. 0.1% of Republic Services shares are owned by company insiders. Comparatively, 8.4% of Select Water Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Republic Services and Select Water Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Services	$16.03 billion	4.09	$2.04 billion	$6.76	31.10
Select Water Solutions	$1.45 billion	0.97	$30.64 million	$0.31	37.46

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Republic Services and Select Water Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Services	0	10	13	2	2.68
Select Water Solutions	0	1	2	1	3.00

Republic Services currently has a consensus price target of $257.10, indicating a potential upside of 22.29%. Select Water Solutions has a consensus price target of $15.00, indicating a potential upside of 29.17%. Given Select Water Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Select Water Solutions is more favorable than Republic Services.

Volatility & Risk

Republic Services has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Select Water Solutions has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares Republic Services and Select Water Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Services	12.97%	18.27%	6.48%
Select Water Solutions	2.26%	3.69%	2.34%

Summary

Republic Services beats Select Water Solutions on 11 of the 18 factors compared between the two stocks.

About Republic Services

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.

About Select Water Solutions

Select Water Solutions, Inc., together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services. The Water Infrastructure segment engages in the recycling, gathering, transferring, and disposal of water through a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources, and SWDs; provides solids management services; and develops, builds, and operates semi-permanent and permanent infrastructure solutions. The Chemical Technologies segment provides technical solutions, products, and services related to chemical applications in the oil and gas industry. This segment develops, manufactures, and manages logistics; and provides chemicals used in hydraulic fracturing, stimulation, cementing, and well completions for pressure pumpers and oil and gas producers, as well as offers production chemical solutions for underperforming wells, corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. It primarily serves oil and gas producers. The company was formerly known as Select Energy Services, Inc. and changed its name to Select Water Solutions, Inc. in May 2023. Select Water Solutions, Inc. was incorporated in 2016 and is headquartered in Houston, Texas.