Waste Connections, Inc. (WCN) vs Waste Management, Inc. (WM)

Waste Connections, Inc. and Waste Management, Inc. are both Waste Management companies. Waste Management, Inc. is the larger, with a market value of $89.6B against $41.7B — 2.1× the size. Waste Management, Inc. trades at the lower P/E: 32.0× against 40.3×. Waste Management, Inc. grew revenue faster over the last twelve months: 7.17% against 5.74%. Waste Management, Inc. has the higher net margin (11.1% vs 10.9%) and the higher return on invested capital (8.61% vs 6.04%). Both pay a dividend; Waste Management, Inc. yields more (1.61% vs 0.84%). Across the 23 metrics below, Waste Management, Inc. leads on 16 and Waste Connections, Inc. on 7.

Valuation

Metric WCN WM Waste Management median
P/E 40.31 32.01 35.70
P/S 4.34 3.55 3.00
P/B 5.35 9.18 1.49
Price to free cash flow 36.11 25.50 26.09
EV/EBITDA 17.54 15.01 15.78
EV/Sales 5.29 4.44 3.97
Earnings yield 2.48% 3.12% 0.05%
Free cash flow yield 2.77% 3.92% 1.22%

Profitability

Metric WCN WM Waste Management median
Gross margin 42.53% 40.60% 31.60%
Operating margin 17.02% 17.57% 0.50%
Net margin 10.86% 11.12% 0.00%
Free cash flow margin 12.03% 13.92% 0.00%
Return on equity 13.03% 29.83% 0.00%
Return on assets 5.04% 6.19% 0.00%
Return on invested capital 6.04% 8.61% 0.00%

Growth

Metric WCN WM Waste Management median
Revenue growth (TTM) 5.74% 7.17% 5.74%
EPS growth (last fiscal year) 74.48% (1.62%) 5.82%
Revenue growth, 5-year CAGR 11.69% 10.62% 12.80%
Net income growth, 5-year CAGR 39.38% 12.60% 0.00%

Health

Metric WCN WM Waste Management median
Debt to equity 1.18 2.35 0.88
Current ratio 0.66 0.91 1.32
Net debt to EBITDA 3.00 3.10 2.03

Dividend

Metric WCN WM Waste Management median
Dividend yield 0.84% 1.61% —
Payout ratio 0.34 0.52 —

Size

Metric WCN WM Waste Management median
Market cap 41.72b 89.61b 113.65m

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