Contrasting Casella Waste Systems (NASDAQ:CWST) and Openlane (NYSE:OPLN)

Casella Waste Systems (NASDAQ:CWST) and Openlane (NYSE:OPLN) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Insider and Institutional Ownership

99.5% of Casella Waste Systems shares are held by institutional investors. Comparatively, 99.8% of Openlane shares are held by institutional investors. 3.8% of Casella Waste Systems shares are held by company insiders. Comparatively, 2.2% of Openlane shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Casella Waste Systems has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Openlane has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Profitability

This table compares Casella Waste Systems and Openlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Casella Waste Systems	0.29%	5.32%	2.49%
Openlane	9.67%	12.81%	3.62%

Valuation and Earnings

This table compares Casella Waste Systems and Openlane”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casella Waste Systems	$1.84 billion	3.38	$7.87 million	$0.09	1,084.56
Openlane	$2.08 billion	2.23	$177.70 million	($0.85)	-44.36

Openlane has higher revenue and earnings than Casella Waste Systems. Openlane 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Casella Waste Systems and Openlane, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casella Waste Systems	1	3	4	1	2.56
Openlane	0	3	4	0	2.57

Casella Waste Systems presently has a consensus target price of $105.83, indicating a potential upside of 8.42%. Openlane has a consensus target price of $43.83, indicating a potential upside of 16.26%. Given Openlane’s stronger consensus rating and higher probable upside, analysts plainly believe Openlane is more favorable than Casella Waste Systems.

Summary

Openlane beats Casella Waste Systems on 9 of the 14 factors compared between the two stocks.

About Casella Waste Systems

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides non-hazardous solid waste services, including collections, transfer stations, recycling, and disposal operations. In addition, it markets materials, including fibers, corrugated cardboard, newsprint, plastics, glass, ferrous, and aluminum metals. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.

About Openlane

OPENLANE Inc. provides sellers and buyers across the wholesale used vehicle industry with technology-driven remarketing solutions. The company’s end-to-end platform supports whole car, financing, logistics and other ancillary and related services. OPENLANE Inc., formerly known as KAR Auction Services Inc., is based in CARMEL, Ind.