Analyzing Waste Management (NYSE:WM) & Quest Resource (NASDAQ:QRHC)

Quest Resource (NASDAQ:QRHC) and Waste Management (NYSE:WM) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Risk and Volatility

Quest Resource has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Waste Management has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Insider & Institutional Ownership

48.2% of Quest Resource shares are held by institutional investors. Comparatively, 80.4% of Waste Management shares are held by institutional investors. 19.6% of Quest Resource shares are held by company insiders. Comparatively, 0.2% of Waste Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Quest Resource and Waste Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quest Resource	-7.07%	-14.75%	-3.78%
Waste Management	11.78%	31.97%	6.90%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Quest Resource and Waste Management, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quest Resource	1	1	0	0	1.50
Waste Management	0	8	18	0	2.69

Waste Management has a consensus price target of $257.04, suggesting a potential upside of 8.11%. Given Waste Management’s stronger consensus rating and higher probable upside, analysts plainly believe Waste Management is more favorable than Quest Resource.

Earnings and Valuation

This table compares Quest Resource and Waste Management”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quest Resource	$250.22 million	0.10	-$15.38 million	($0.78)	-1.51
Waste Management	$25.20 billion	3.75	$2.71 billion	$7.62	31.20

Waste Management has higher revenue and earnings than Quest Resource. Quest Resource is trading at a lower price-to-earnings ratio than Waste Management, indicating that it is currently the more affordable of the two stocks.

Summary

Waste Management beats Quest Resource on 13 of the 14 factors compared between the two stocks.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. It offers antifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, the company offers landfill diversion services. Its services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. The company markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is headquartered in The Colony, Texas.

About Waste Management

Waste Management, Inc., through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns and operates transfer stations, as well as owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity. As of December 31, 2022, the company owned or operated 254 solid waste landfills, five secure hazardous waste landfills, 97 MRFs, and 337 transfer stations. It also provides materials processing and commodities recycling services at its MRFs, where cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.