Republic Services, Inc. (RSG) vs Waste Management, Inc. (WM)

Republic Services, Inc. and Waste Management, Inc. are both Waste Management companies. Waste Management, Inc. is the larger, with a market value of $89.6B against $70.3B — 1.3× the size. Waste Management, Inc. trades at the lower P/E: 32.0× against 32.8×. Waste Management, Inc. grew revenue faster over the last twelve months: 7.17% against 3.20%. Republic Services, Inc. has the higher net margin (12.9% vs 11.1%) and the lower return on invested capital (8.27% vs 8.61%). Both pay a dividend; Waste Management, Inc. yields more (1.61% vs 1.10%). Across the 23 metrics below, Waste Management, Inc. leads on 13 and Republic Services, Inc. on 10.

Valuation

Metric RSG WM Waste Management median
P/E 32.75 32.01 35.70
P/S 4.21 3.55 3.00
P/B 5.91 9.18 1.49
Price to free cash flow 26.68 25.50 26.09
EV/EBITDA 15.79 15.01 15.78
EV/Sales 5.00 4.44 3.97
Earnings yield 3.05% 3.12% 0.05%
Free cash flow yield 3.75% 3.92% 1.22%

Profitability

Metric RSG WM Waste Management median
Gross margin 42.00% 40.60% 31.60%
Operating margin 19.94% 17.57% 0.50%
Net margin 12.94% 11.12% 0.00%
Free cash flow margin 15.78% 13.92% 0.00%
Return on equity 18.14% 29.83% 0.00%
Return on assets 6.37% 6.19% 0.00%
Return on invested capital 8.27% 8.61% 0.00%

Growth

Metric RSG WM Waste Management median
Revenue growth (TTM) 3.20% 7.17% 5.74%
EPS growth (last fiscal year) 5.55% (1.62%) 5.82%
Revenue growth, 5-year CAGR 10.32% 10.62% 12.80%
Net income growth, 5-year CAGR 17.20% 12.60% 0.00%

Health

Metric RSG WM Waste Management median
Debt to equity 1.12 2.35 0.88
Current ratio 0.64 0.91 1.32
Net debt to EBITDA 2.47 3.10 2.03

Dividend

Metric RSG WM Waste Management median
Dividend yield 1.10% 1.61% —
Payout ratio 0.36 0.52 —

Size

Metric RSG WM Waste Management median
Market cap 70.32b 89.61b 113.65m

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