GFL Environmental Inc. (GFL) vs Waste Connections, Inc. (WCN)

GFL Environmental Inc. and Waste Connections, Inc. are both Waste Management companies. Waste Connections, Inc. is the larger, with a market value of $48.0B against $20.1B — 2.4× the size. GFL Environmental Inc. has negative trailing earnings, so its P/E is not meaningful; Waste Connections, Inc. trades at 42.7×. GFL Environmental Inc. grew revenue faster over the last twelve months: 8.19% against 6.30%. Waste Connections, Inc. has the higher net margin (11.4% vs −5.39%) and the higher return on invested capital (6.37% vs 1.45%). Both pay a dividend; Waste Connections, Inc. yields more (0.75% vs 0.14%). Across the 22 metrics below, Waste Connections, Inc. leads on 14 and GFL Environmental Inc. on 8.

Valuation

Metric GFL WCN Waste Management median
P/E n/m 42.72 29.71
P/S 3.32 4.83 3.28
P/B 2.09 6.09 1.22
Price to free cash flow 79.93 40.51 28.87
EV/EBITDA 17.81 18.69 17.07
EV/Sales 4.92 5.77 4.15
Earnings yield (1.73%) 2.34% (0.73%)
Free cash flow yield 1.25% 2.47% 0.00%

Profitability

Metric GFL WCN Waste Management median
Gross margin 19.48% 42.62% 20.46%
Operating margin 7.39% 17.74% 0.00%
Net margin (5.39%) 11.40% 0.00%
Free cash flow margin 4.15% 11.91% 0.00%
Return on equity (4.07%) 14.19% 0.00%
Return on assets (1.66%) 5.36% 0.00%
Return on invested capital 1.45% 6.37% 0.00%

Growth

Metric GFL WCN Waste Management median
Revenue growth (TTM) 8.19% 6.30% 6.30%
EPS growth (last fiscal year) 573.51% 74.48% 2.78%
Revenue growth, 5-year CAGR 8.61% 11.69% 11.16%
Net income growth, 5-year CAGR 0.00% 39.38% 0.00%

Health

Metric GFL WCN Waste Management median
Debt to equity 1.03 1.21 0.44
Current ratio 0.93 0.67 1.31
Net debt to EBITDA 4.10 3.00 2.03

Dividend

Metric GFL WCN Waste Management median
Dividend yield 0.14% 0.75% 0.89%
Payout ratio — 0.32 —

Size

Metric GFL WCN Waste Management median
Market cap 20.11b 47.95b 193.50m

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