Critical Comparison: Stericycle (NASDAQ:SRCL) & Its Rivals

Stericycle (NASDAQ: SRCL) is one of 20 public companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it contrast to its competitors? We will compare Stericycle to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.

Volatility & Risk

Stericycle has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Stericycle’s competitors have a beta of 0.62, meaning that their average share price is 38% less volatile than the S&P 500.

Profitability

This table compares Stericycle and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stericycle -0.79% 13.93% 5.61%
Stericycle Competitors -280.96% -68.14% -14.45%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Stericycle and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stericycle 2 3 6 0 2.36
Stericycle Competitors 46 280 586 14 2.61

Stericycle currently has a consensus target price of $75.90, suggesting a potential upside of 15.38%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 9.73%. Given Stericycle’s higher probable upside, equities research analysts clearly believe Stericycle is more favorable than its competitors.

Institutional & Insider Ownership

94.6% of Stericycle shares are held by institutional investors. Comparatively, 53.0% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 3.5% of Stericycle shares are held by company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Stericycle and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Stericycle $3.56 billion $206.35 million -115.40
Stericycle Competitors $850.65 million $28.19 million 147.52

Stericycle has higher revenue and earnings than its competitors. Stericycle is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Stericycle beats its competitors on 7 of the 13 factors compared.

About Stericycle

Stericycle, Inc. is a business-to-business services provider. The Company focuses on regulated and compliance solutions for healthcare, retail, and commercial businesses. The Company’s segments include Domestic and Canada Regulated Waste and Compliance Services (RCS), Domestic Communication and Related Services (CRS), International RCS and All other. The Domestic and Canada RCS and International RCS segments include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, training and consulting through its Steri-Safe and Clinical Services programs, and other regulatory compliance services. The Domestic CRS segment consists of inbound/outbound communication, automated patient reminders, online scheduling, notifications, product retrievals, product returns and quality audits.

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