Advanced Disposal Services (ADSW) and The Competition Financial Review

Advanced Disposal Services (NYSE: ADSW) is one of 20 publicly-traded companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it weigh in compared to its competitors? We will compare Advanced Disposal Services to similar companies based on the strength of its earnings, profitability, institutional ownership, dividends, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

96.5% of Advanced Disposal Services shares are held by institutional investors. Comparatively, 52.2% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 1.2% of Advanced Disposal Services shares are held by company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Advanced Disposal Services and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Disposal Services 0 2 6 0 2.75
Advanced Disposal Services Competitors 48 284 595 15 2.61

Advanced Disposal Services presently has a consensus target price of $26.00, indicating a potential upside of 10.87%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 5.35%. Given Advanced Disposal Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Advanced Disposal Services is more favorable than its competitors.

Volatility and Risk

Advanced Disposal Services has a beta of -0.7, meaning that its share price is 170% less volatile than the S&P 500. Comparatively, Advanced Disposal Services’ competitors have a beta of 0.70, meaning that their average share price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares Advanced Disposal Services and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Advanced Disposal Services $1.40 billion -$30.40 million -83.75
Advanced Disposal Services Competitors $850.65 million $28.19 million 167.05

Advanced Disposal Services has higher revenue, but lower earnings than its competitors. Advanced Disposal Services is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Advanced Disposal Services and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Disposal Services -1.61% 5.84% 1.41%
Advanced Disposal Services Competitors -6.70% -4.94% -1.74%

Summary

Advanced Disposal Services beats its competitors on 8 of the 13 factors compared.

About Advanced Disposal Services

Advanced Disposal Services, Inc. is an integrated provider of non-hazardous solid waste collection, transfer, recycling and disposal services operating primarily in secondary markets or under exclusive arrangements. The Company’s segments include South, East, Midwest and Corporate. As of December 31, 2016, the Company had its presence in 16 states across the Midwest, South and East regions of the United States, as well as in the Commonwealth of the Bahamas, served approximately 2.7 million residential customers and over 200,000 commercial and industrial (C&I) customers through its network of 90 collection operations, 72 transfer stations, 21 owned or operated recycling facilities and 39 owned or operated active landfills. The Company’s vertically integrated environmental services operations can be classified into three lines of business: collection services, disposal services and recycling services. The disposal services include transfer stations and landfills.

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