Financial Analysis: Republic Services (RSG) versus Its Peers

Republic Services (NYSE:RSG) is one of 39 public companies in the “Waste Removal Svcs” industry, but how does it compare to its competitors? We will compare Republic Services to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Republic Services	12.88%	18.28%	6.41%
Republic Services Competitors	-97.71%	-458.29%	-3.74%

Volatility and Risk

Republic Services has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Republic Services’ competitors have a beta of 0.63, indicating that their average share price is 37% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Republic Services	$16.03 billion	$2.04 billion	37.81
Republic Services Competitors	$3.35 billion	$263.08 million	31.63

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Republic Services and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Services	0	9	12	2	2.70
Republic Services Competitors	323	1116	1891	130	2.53

Republic Services currently has a consensus target price of $252.68, indicating a potential upside of 0.81%. As a group, “Waste Removal Svcs” companies have a potential upside of 12.39%. Given Republic Services’ competitors higher probable upside, analysts clearly believe Republic Services has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

57.7% of Republic Services shares are held by institutional investors. Comparatively, 57.0% of shares of all “Waste Removal Svcs” companies are held by institutional investors. 0.1% of Republic Services shares are held by insiders. Comparatively, 11.9% of shares of all “Waste Removal Svcs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Republic Services pays an annual dividend of $2.32 per share and has a dividend yield of 0.9%. Republic Services pays out 35.0% of its earnings in the form of a dividend. As a group, “Waste Removal Svcs” companies pay a dividend yield of 1.0% and pay out 50.1% of their earnings in the form of a dividend. Republic Services has increased its dividend for 22 consecutive years.

Summary

Republic Services beats its competitors on 11 of the 15 factors compared.

Republic Services Company Profile

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.