GFL Environmental Inc. (GFL) vs Waste Management, Inc. (WM)

GFL Environmental Inc. and Waste Management, Inc. are both Waste Management companies. Waste Management, Inc. is the larger, with a market value of $89.6B against $19.0B — 4.7× the size. GFL Environmental Inc. has negative trailing earnings, so its P/E is not meaningful; Waste Management, Inc. trades at 32.0×. Waste Management, Inc. grew revenue faster over the last twelve months: 7.17% against −2.93%. Waste Management, Inc. has the higher net margin (11.1% vs −1.75%) and the higher return on invested capital (8.61% vs 2.00%). Both pay a dividend; Waste Management, Inc. yields more (1.61% vs 0.15%). Across the 22 metrics below, Waste Management, Inc. leads on 18 and GFL Environmental Inc. on 4.

Valuation

Metric GFL WM Waste Management median
P/E n/m 32.01 35.70
P/S 3.14 3.55 3.00
P/B 2.91 9.18 1.49
Price to free cash flow 81.90 25.50 26.09
EV/EBITDA 16.32 15.01 15.78
EV/Sales 4.57 4.44 3.97
Earnings yield (1.21%) 3.12% 0.05%
Free cash flow yield 1.22% 3.92% 1.22%

Profitability

Metric GFL WM Waste Management median
Gross margin 19.96% 40.60% 31.60%
Operating margin 7.99% 17.57% 0.50%
Net margin (1.75%) 11.12% 0.00%
Free cash flow margin 3.84% 13.92% 0.00%
Return on equity (1.58%) 29.83% 0.00%
Return on assets (0.61%) 6.19% 0.00%
Return on invested capital 2.00% 8.61% 0.00%

Growth

Metric GFL WM Waste Management median
Revenue growth (TTM) (2.93%) 7.17% 5.74%
EPS growth (last fiscal year) 573.51% (1.62%) 5.82%
Revenue growth, 5-year CAGR 8.61% 10.62% 12.80%
Net income growth, 5-year CAGR 0.00% 12.60% 0.00%

Health

Metric GFL WM Waste Management median
Debt to equity 1.34 2.35 0.88
Current ratio 0.75 0.91 1.32
Net debt to EBITDA 4.10 3.10 2.03

Dividend

Metric GFL WM Waste Management median
Dividend yield 0.15% 1.61% —
Payout ratio — 0.52 —

Size

Metric GFL WM Waste Management median
Market cap 18.99b 89.61b 113.65m

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