Critical Analysis: Casella Waste Systems (NASDAQ:CWST) and Cimpress (NASDAQ:CMPR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cimpress	2.57%	-18.83%	4.75%
Casella Waste Systems	0.29%	5.32%	2.49%

Analyst Ratings

This is a summary of current ratings and target prices for Cimpress and Casella Waste Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cimpress	0	2	3	0	2.60
Casella Waste Systems	1	2	7	1	2.73

Cimpress presently has a consensus price target of $114.50, indicating a potential upside of 28.85%. Casella Waste Systems has a consensus price target of $109.75, indicating a potential upside of 17.95%. Given Cimpress’ higher probable upside, research analysts plainly believe Cimpress is more favorable than Casella Waste Systems.

Institutional & Insider Ownership

77.6% of Cimpress shares are owned by institutional investors. Comparatively, 99.5% of Casella Waste Systems shares are owned by institutional investors. 10.2% of Cimpress shares are owned by insiders. Comparatively, 3.8% of Casella Waste Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cimpress and Casella Waste Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cimpress	$3.74 billion	0.58	$95.87 million	$3.77	23.57
Casella Waste Systems	$1.84 billion	3.22	$7.87 million	$0.09	1,033.89

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

Risk & Volatility

Cimpress has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Casella Waste Systems has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

Cimpress beats Casella Waste Systems on 8 of the 15 factors compared between the two stocks.

About Cimpress

Cimpress plc provides various mass customization of printing and related products in North America, Europe, and internationally. The company operates through five segments: Vista, PrintBrothers, The Print Group, National Pen, and All Other Businesses. It offers printed and digital marketing products; internet-based canvas-print wall décor, business signage, and other printed products; business cards; and marketing materials, such as flyers and postcards, digital and marketing services, writing instruments, decorated apparel, promotional products and gifts, packaging, design services, textiles, and magazines and catalogs. The company also manufactures and markets custom writing instruments and promotional products, apparels, and gifts; and provides professional desktop publishing skill sets for local printers, print resellers, graphic artists, advertising agencies, and other customers. In addition, it offers graphic design services, do-it-yourself (DIY) design services, website services, and corporate solutions under the VistaPrint, VistaCreate, 99designs by Vista, Vista Corporate Solutions, and Vista x Wix brand names; and online printing solutions. Further, the company provides promotional and packaging products, logo apparel, books and magazines, wall decors, photo merchandise, invitations and announcements, and other categories; website design and hosting, and email marketing services, as well as order referral and other third-party offerings. The company serves various businesses, graphic designers, resellers, and printers, as well as teams, associations, groups, consumers, and families. Cimpress plc was founded in 1994 and is based in Dundalk, Ireland.

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.