Covanta (NYSE: CVA) is one of 20 publicly-traded companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it weigh in compared to its rivals? We will compare Covanta to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, analyst recommendations and dividends.
This table compares Covanta and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Covanta pays an annual dividend of $1.00 per share and has a dividend yield of 6.6%. Covanta pays out -200.0% of its earnings in the form of a dividend. As a group, “Waste Management, Disposal & Recycling Services” companies pay a dividend yield of 1.8% and pay out 98.5% of their earnings in the form of a dividend. Covanta is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Covanta and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Covanta||$1.70 billion||-$4.00 million||-30.20|
|Covanta Competitors||$850.65 million||$28.19 million||146.22|
Covanta has higher revenue, but lower earnings than its rivals. Covanta is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Covanta has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Covanta’s rivals have a beta of 0.62, meaning that their average stock price is 38% less volatile than the S&P 500.
Insider & Institutional Ownership
94.8% of Covanta shares are owned by institutional investors. Comparatively, 52.9% of shares of all “Waste Management, Disposal & Recycling Services” companies are owned by institutional investors. 11.6% of Covanta shares are owned by company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Covanta and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Covanta currently has a consensus price target of $17.79, suggesting a potential upside of 17.79%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 10.37%. Given Covanta’s stronger consensus rating and higher probable upside, equities analysts plainly believe Covanta is more favorable than its rivals.
Covanta beats its rivals on 11 of the 14 factors compared.
Covanta Company Profile
Covanta Holding Corporation is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. The Company operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada. Outside of North America, the Company is constructing an energy-from-waste (EfW) facility in Dublin, Ireland. The Company holds interests in an EfW facility in Italy and an infrastructure business in China, which is engaged in EfW operations. These EfW projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the EfW process.
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