Casella Waste Systems (NASDAQ: CWST) and Perma-Fix Environmental Services (NASDAQ:PESI) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
This table compares Casella Waste Systems and Perma-Fix Environmental Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Casella Waste Systems||-10.01%||-60.26%||3.31%|
|Perma-Fix Environmental Services||-6.23%||-8.74%||-4.12%|
Risk & Volatility
Casella Waste Systems has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Perma-Fix Environmental Services has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Casella Waste Systems and Perma-Fix Environmental Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Casella Waste Systems||0||3||2||0||2.40|
|Perma-Fix Environmental Services||0||0||0||0||N/A|
Casella Waste Systems presently has a consensus price target of $16.60, suggesting a potential downside of 8.39%. Given Casella Waste Systems’ higher probable upside, equities analysts clearly believe Casella Waste Systems is more favorable than Perma-Fix Environmental Services.
Institutional and Insider Ownership
77.4% of Casella Waste Systems shares are held by institutional investors. Comparatively, 26.0% of Perma-Fix Environmental Services shares are held by institutional investors. 11.5% of Casella Waste Systems shares are held by insiders. Comparatively, 6.2% of Perma-Fix Environmental Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Casella Waste Systems and Perma-Fix Environmental Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Casella Waste Systems||$582.75 million||1.31||$112.99 million||($1.40)||-12.94|
|Perma-Fix Environmental Services||$51.79 million||0.85||$2.12 million||($0.27)||-13.89|
Casella Waste Systems has higher revenue and earnings than Perma-Fix Environmental Services. Perma-Fix Environmental Services is trading at a lower price-to-earnings ratio than Casella Waste Systems, indicating that it is currently the more affordable of the two stocks.
Casella Waste Systems beats Perma-Fix Environmental Services on 8 of the 12 factors compared between the two stocks.
About Casella Waste Systems
Casella Waste Systems, Inc. is a solid waste services company. The Company provides resource management services to residential, commercial, municipal and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services. It manages its solid waste operations on a geographic basis through two regional operating segments: Eastern and Western regions, each of which provides a range of solid waste services, and its recycling and commodity brokerage operations through its Recycling segment. Organics services, ancillary operations and industrial services are included in its Other segment. As of January 31, 2017, the Company owned and/or operated 32 solid waste collection operations, 46 transfer stations, 18 recycling facilities, nine Subtitle D landfills, four landfill gas-to-energy facilities and one landfill permitted to accept construction and demolition (C&D) materials.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is an environmental and environmental technology know-how company. It operates in three segments: The Treatment Segment (Treatment), the Services Segment (Services) and the Medical Segment (Medical). Treatment includes nuclear, low-level radioactive, mixed (waste containing both hazardous and low-level radioactive waste), hazardous and non-hazardous waste treatment, processing and disposal services primarily through approximately four licensed and permitted treatment and storage facilities held by its subsidiaries. Services include on-site waste management services to commercial and government customers, technical services and nuclear services. The Medical segment includes research and development (R&D) of a new medical isotope production technology by its Polish subsidiary, Perma-Fix Medical S.A. (PF Medical). Its Treatment and Services provide services to research institutions, commercial companies, public utilities and governmental agencies.
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