Financial Review of GFL Environmental (NYSE:GFL) and Quest Resource (NASDAQ:QRHC)


GFL Environmental (NYSE:GFL – Get Rating) and Quest Resource (NASDAQ:QRHC – Get Rating) are both business services companies, but which is the better stock? We’ll compare the two companies based on earnings strength, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Insider and Institutional Ownership

58.8% of GFL Environmental shares are held by institutional investors. By comparison, 30.1% of Quest Resource‘s shares are held by institutional investors. 21.9% of Quest Resource shares are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity and return on assets of GFL Environmental and Quest Resource.

Net margins Return on equity return on assets
GFL Environment -9.39% 2.80% 0.91%
quest resource 1.09% 5.64% 3.16%

Risk and Volatility

GFL Environmental has a beta of 1.39, which means its stock price is 39% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 1.35, which means its stock price is 35% more volatile than the S&P 500.

Valuation and benefits

This chart compares gross revenue, earnings per share (EPS), and valuation of GFL Environmental and Quest Resource.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
GFL Environment $4.41 billion 2.28 -$484.17 million ($1.26) -23.91
quest resource $155.71 million 0.67 $1.69 million $0.08 68.51

Quest Resource has lower revenues, but higher revenues than GFL Environmental. GFL Environmental is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of the current ratings of GFL Environmental and Quest Resource, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
GFL Environment 0 1 9 0 2.90
quest resource 0 0 3 0 3.00

GFL Environmental currently has a consensus target price of $45.94, suggesting a potential upside of 52.49%. Quest Resource has a consensus target price of $11.67, suggesting a potential upside of 112.90%. Given Quest Resource’s stronger consensus rating and higher likely upside, analysts clearly believe Quest Resource is more favorable than GFL Environmental.

Summary

Quest Resource beats GFL Environmental on 9 of the 14 factors compared between the two stocks.

GFL Environmental Company Profile (Get an assessment)

GFL Environmental Inc. is a diversified environmental services company in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation, and liquid waste management services. Its solid waste management business segment includes the collection, transportation, transfer, recycling and disposal of non-hazardous solid waste for municipal, residential, commercial and industrial customers. The Company’s Infrastructure and Soil Remediation business segment provides remediation of contaminated soil, as well as ancillary services including civil, demolition, excavation and shoring services. Its liquid waste management business collects, manages, transports, treats and disposes of a range of industrial and commercial liquid waste, as well as the resale of liquid waste products. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.

Company Profile Quest Resource (Get an assessment)

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling and disposal of various waste streams and recyclable materials in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, used tires, oily water, destruction of goods, food scraps, rendered meat, waste cooking and grease trap oil, plastics, cardboard, metal, glass, mixed paper, construction debris, and a wide variety of regulated and unregulated solid, liquid and gaseous wastes. The company provides antifreeze and windshield washer fluid, dumpster and compaction equipment, and other minor ancillary services. Additionally, it offers landfill diversion services. The company’s services focus on waste streams and recyclables from mass merchandisers, grocers and other retailers; automotive service, quick lube, dealerships and collision repair; transport, logistics and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to the automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management sectors through a direct sales force and strategic partnerships. The company was previously known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.



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