Waste Connections (NYSE: WCN) and Marathon Patent Group (NASDAQ:MARA) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitabiliy and analyst recommendations.
Valuation and Earnings
This table compares Waste Connections and Marathon Patent Group’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Waste Connections | $3.95 billion | 4.40 | $1.22 billion | $1.18 | 55.77 |
| Marathon Patent Group | $34.65 million | 0.18 | $8.58 million | ($1.86) | -0.15 |
Waste Connections has higher revenue and earnings than Marathon Patent Group. Marathon Patent Group is trading at a lower price-to-earnings ratio than Waste Connections, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Waste Connections has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Marathon Patent Group has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Waste Connections and Marathon Patent Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waste Connections | 0 | 1 | 11 | 0 | 2.92 |
| Marathon Patent Group | 0 | 0 | 1 | 0 | 3.00 |
Waste Connections presently has a consensus target price of $66.97, indicating a potential upside of 1.47%. Marathon Patent Group has a consensus target price of $3.00, indicating a potential upside of 1,011.11%. Given Marathon Patent Group’s stronger consensus rating and higher possible upside, analysts plainly believe Marathon Patent Group is more favorable than Waste Connections.
Institutional and Insider Ownership
57.7% of Waste Connections shares are owned by institutional investors. Comparatively, 14.6% of Marathon Patent Group shares are owned by institutional investors. 0.7% of Waste Connections shares are owned by company insiders. Comparatively, 19.8% of Marathon Patent Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Waste Connections and Marathon Patent Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waste Connections | 7.11% | 9.26% | 4.63% |
| Marathon Patent Group | -81.91% | -1,139.06% | -92.34% |
Dividends
Waste Connections pays an annual dividend of $0.48 per share and has a dividend yield of 0.7%. Marathon Patent Group does not pay a dividend. Waste Connections pays out 40.6% of its earnings in the form of a dividend. Waste Connections has raised its dividend for 7 consecutive years.
Summary
Waste Connections beats Marathon Patent Group on 11 of the 16 factors compared between the two stocks.
Waste Connections Company Profile
Waste Connections, Inc. is a solid waste services company in North America. The Company provides waste collection, transfer, disposal and recycling services in markets in the United States and Canada. The Company operates through six segments: Southern segment, Western segment, Eastern segment, Canada segment, Central segment and E&P segment. Through its R360 Environmental Solutions subsidiary, it also provides non-hazardous exploration and production, or E&P, waste treatment, recovery and disposal services in various natural resource producing areas in the United States. It also provides intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. As of December 31, 2016, it served residential, commercial, industrial and exploration and production (E&P) customers in 40 states and the District of Columbia in the United States and five provinces in Canada.
Marathon Patent Group Company Profile
Marathon Patent Group Inc. (MARA) is engaged in acquiring patents and patent rights from owners or other ventures. The Company monetizes its portfolio of patents and patent rights by entering into license discussions. The Company owns around 378 United States and foreign patents, and patent rights across a range of technologies and markets. The Company owns around 22 patent applications across a range of technologies and markets.
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