Republic Services, Inc. (RSG) vs Waste Connections, Inc. (WCN)

Republic Services, Inc. and Waste Connections, Inc. are both Waste Management companies. Republic Services, Inc. is the larger, with a market value of $70.3B against $41.7B — 1.7× the size. Republic Services, Inc. trades at the lower P/E: 32.8× against 40.3×. Waste Connections, Inc. grew revenue faster over the last twelve months: 5.74% against 3.20%. Republic Services, Inc. has the higher net margin (12.9% vs 10.9%) and the higher return on invested capital (8.27% vs 6.04%). Both pay a dividend; Republic Services, Inc. yields more (1.10% vs 0.84%). Across the 23 metrics below, Republic Services, Inc. leads on 16 and Waste Connections, Inc. on 7.

Valuation

Metric RSG WCN Waste Management median
P/E 32.75 40.31 35.70
P/S 4.21 4.34 3.00
P/B 5.91 5.35 1.49
Price to free cash flow 26.68 36.11 26.09
EV/EBITDA 15.79 17.54 15.78
EV/Sales 5.00 5.29 3.97
Earnings yield 3.05% 2.48% 0.05%
Free cash flow yield 3.75% 2.77% 1.22%

Profitability

Metric RSG WCN Waste Management median
Gross margin 42.00% 42.53% 31.60%
Operating margin 19.94% 17.02% 0.50%
Net margin 12.94% 10.86% 0.00%
Free cash flow margin 15.78% 12.03% 0.00%
Return on equity 18.14% 13.03% 0.00%
Return on assets 6.37% 5.04% 0.00%
Return on invested capital 8.27% 6.04% 0.00%

Growth

Metric RSG WCN Waste Management median
Revenue growth (TTM) 3.20% 5.74% 5.74%
EPS growth (last fiscal year) 5.55% 74.48% 5.82%
Revenue growth, 5-year CAGR 10.32% 11.69% 12.80%
Net income growth, 5-year CAGR 17.20% 39.38% 0.00%

Health

Metric RSG WCN Waste Management median
Debt to equity 1.12 1.18 0.88
Current ratio 0.64 0.66 1.32
Net debt to EBITDA 2.47 3.00 2.03

Dividend

Metric RSG WCN Waste Management median
Dividend yield 1.10% 0.84% —
Payout ratio 0.36 0.34 —

Size

Metric RSG WCN Waste Management median
Market cap 70.32b 41.72b 113.65m

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