Nalco Holding (NYSE: NLC) and Clean Harbors (NYSE:CLH) are both mid-cap environmental services & equipment – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Earnings & Valuation
This table compares Nalco Holding and Clean Harbors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Clean Harbors||$2.76 billion||1.11||-$39.87 million||$0.07||765.82|
Nalco Holding has higher revenue, but lower earnings than Clean Harbors. Nalco Holding is trading at a lower price-to-earnings ratio than Clean Harbors, indicating that it is currently the more affordable of the two stocks.
This table compares Nalco Holding and Clean Harbors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Nalco Holding and Clean Harbors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Clean Harbors has a consensus target price of $61.00, suggesting a potential upside of 13.81%.
Institutional & Insider Ownership
93.8% of Clean Harbors shares are owned by institutional investors. 8.9% of Clean Harbors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Nalco Holding has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Clean Harbors has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
Nalco Holding beats Clean Harbors on 5 of the 9 factors compared between the two stocks.
About Nalco Holding
Nalco Holding Company provides water, energy, air and process technologies and services. It provides service for water, energy and air through the worldwide manufacture and sale of specialized service chemical programs. This includes production and service related to the sale and application of chemicals and technology used in water treatment, pollution control, energy conservation, oil production and refining, steelmaking, papermaking, mining, and other industrial processes. It has three segments: Water Services, Paper Services and Energy Services. In July 2010, it acquired all of the business assets of Fabrication Technologies, Inc. (FabTech), which is a North American supplier of enhanced oil recovery (EOR) mixing and injection equipment. In April 2010, it purchased the assets of Res-Kem Corp. and General Water Services Corp. In January 2010, Nalco acquired a 50.1% controlling financial interest in Nalco Africa. In December 2011, it merged with Ecolab, Inc.
About Clean Harbors
Clean Harbors, Inc. is a provider of environmental, energy and industrial services throughout North America. The Company is also a re-refiner and recycler of used oil in the world and a provider of parts cleaning and related environmental services to commercial, industrial and automotive customers in North America. The Company operates in six segments: Technical Services, Industrial Services, Field Services, Safety-Kleen, Oil and Gas Field Services, and Lodging Services. The Company is also a service provider in the recovery and decontamination of pollutants. The Company provides services to protect the ozone layer from the effects of chlorofluorocarbons (CFCs). It offers brands, such as Performance Plus brand and green brand EcoPower. The Company also offers CleanPack services, which include the collection, identification and categorization, packaging, transportation and disposal of laboratory chemicals and household hazardous waste. It also provides hydro excavation services.
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