Brink’s (NYSE:BCO) and Casella Waste Systems (NASDAQ:CWST) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Casella Waste Systems	0.38%	5.19%	2.48%
Brink’s	3.30%	87.18%	4.95%

Risk & Volatility

Casella Waste Systems has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Brink’s has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Casella Waste Systems and Brink’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casella Waste Systems	1	2	7	1	2.73
Brink’s	0	2	2	0	2.50

Casella Waste Systems currently has a consensus price target of $110.12, suggesting a potential upside of 23.17%. Brink’s has a consensus price target of $154.00, suggesting a potential upside of 37.19%. Given Brink’s’ higher possible upside, analysts plainly believe Brink’s is more favorable than Casella Waste Systems.

Insider & Institutional Ownership

99.5% of Casella Waste Systems shares are held by institutional investors. Comparatively, 95.0% of Brink’s shares are held by institutional investors. 3.8% of Casella Waste Systems shares are held by insiders. Comparatively, 1.0% of Brink’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Casella Waste Systems and Brink’s”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	3.10	$7.87 million	$0.11	812.82
Brink’s	$5.39 billion	0.86	$199.70 million	$4.32	25.98

Brink’s has higher revenue and earnings than Casella Waste Systems. Brink’s 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.

Summary

Brink’s beats Casella Waste Systems on 8 of the 15 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 Brink’s

The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.