Analyzing China Industrial Waste Management (OTCMKTS:CIWT) and Republic Services (RSG)

China Industrial Waste Management (OTCMKTS:CIWT) and Republic Services (NYSE:RSG) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares China Industrial Waste Management and Republic Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Industrial Waste Management N/A N/A N/A
Republic Services 13.90% 12.11% 4.52%

Risk and Volatility

China Industrial Waste Management has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Republic Services has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares China Industrial Waste Management and Republic Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Industrial Waste Management N/A N/A N/A N/A N/A
Republic Services $10.04 billion 2.41 $1.28 billion $2.43 30.72

Republic Services has higher revenue and earnings than China Industrial Waste Management.

Insider and Institutional Ownership

59.2% of Republic Services shares are held by institutional investors. 0.3% of Republic 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.

Analyst Recommendations

This is a summary of current ratings for China Industrial Waste Management and Republic Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Industrial Waste Management 0 0 0 0 N/A
Republic Services 0 6 3 0 2.33

Republic Services has a consensus target price of $74.14, suggesting a potential downside of 0.68%. Given Republic Services’ higher possible upside, analysts plainly believe Republic Services is more favorable than China Industrial Waste Management.

Dividends

Republic Services pays an annual dividend of $1.50 per share and has a dividend yield of 2.0%. China Industrial Waste Management does not pay a dividend. Republic Services pays out 61.7% of its earnings in the form of a dividend. Republic Services has increased its dividend for 9 consecutive years.

Summary

Republic Services beats China Industrial Waste Management on 10 of the 12 factors compared between the two stocks.

China Industrial Waste Management Company Profile

China Industrial Waste Management, Inc. provides environmental services and solutions in northeastern China. The company collects, stores, treats, disposes, and recycles industrial solid waste through incineration and/or landfill, physical and/or chemical treatment, material processing, packaging, analysis, and storage. It is also involved in the treatment of municipal sewage, as well as sludge resulting from the processing of sewage that is routed from the sewage treatment facilities located in Dalian and surrounding areas. The company operates a sewage treatment facility and a sludge treatment facility in Dalian, as well as provides environmental pollution remediation services to the Dalian municipal government. In addition, it offers environmental protection, technology consultation, pollution treatment, waste management design processing, waste disposal, waste transportation, and onsite waste management services. The company sells its recycled materials, including cupric sulfate, as well as metals and methane derived from sludge treatment to commodity traders and metallurgical companies. China Industrial Waste Management, Inc. was founded in 1991 and is based in Dalian, China.

Republic Services Company Profile

Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico. The company's collection services include curbside collection of waste for transport to transfer stations; supply of waste containers; and renting of compactors. It is also involved in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; temporary waste collection services; and provision of landfill services. As of December 31, 2017, the company operated through 343 collection operations, 204 transfer stations, 195 active landfills, 90 recycling centers, and 11 salt water disposal wells, as well as 7 treatment, recovery, and disposal facilities in 40 states and Puerto Rico. It also operated 68 landfill gas and renewable energy projects and had 124 closed landfills. The company was founded in 1996 and is based in Phoenix, Arizona.

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