Casella Waste Systems, Inc. (CWST) vs Waste Connections, Inc. (WCN)

Casella Waste Systems, Inc. and Waste Connections, Inc. are both Waste Management companies. Waste Connections, Inc. is the larger, with a market value of $41.7B against $5.5B — 7.6× the size. Waste Connections, Inc. trades at the lower P/E: 40.3× against 978×. Casella Waste Systems, Inc. grew revenue faster over the last twelve months: 13.6% against 5.74%. Waste Connections, Inc. has the higher net margin (10.9% vs 0.29%) and the higher return on invested capital (6.04% vs 1.42%). Across the 22 metrics below, Waste Connections, Inc. leads on 14 and Casella Waste Systems, Inc. on 8.

Valuation

Metric CWST WCN Waste Management median
P/E 977.78 40.31 35.70
P/S 2.86 4.34 3.00
P/B 3.54 5.35 1.49
Price to free cash flow 52.88 36.11 26.09
EV/EBITDA 17.58 17.54 15.78
EV/Sales 3.54 5.29 3.97
Earnings yield 0.10% 2.48% 0.05%
Free cash flow yield 1.89% 2.77% 1.22%

Profitability

Metric CWST WCN Waste Management median
Gross margin 33.42% 42.53% 31.60%
Operating margin 3.38% 17.02% 0.50%
Net margin 0.29% 10.86% 0.00%
Free cash flow margin 5.45% 12.03% 0.00%
Return on equity 0.36% 13.03% 0.00%
Return on assets 0.17% 5.04% 0.00%
Return on invested capital 1.42% 6.04% 0.00%

Growth

Metric CWST WCN Waste Management median
Revenue growth (TTM) 13.59% 5.74% 5.74%
EPS growth (last fiscal year) (47.83%) 74.48% 5.82%
Revenue growth, 5-year CAGR 18.85% 11.69% 12.80%
Net income growth, 5-year CAGR (38.72%) 39.38% 0.00%

Health

Metric CWST WCN Waste Management median
Debt to equity 0.85 1.18 0.88
Current ratio 0.99 0.66 1.32
Net debt to EBITDA 2.76 3.00 2.03

Dividend

Metric CWST WCN Waste Management median
Dividend yield — 0.84% —
Payout ratio — 0.34 —

Size

Metric CWST WCN Waste Management median
Market cap 5.50b 41.72b 113.65m

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