Critical Analysis: Quest Resource (NASDAQ:QRHC) vs. Republic Services (NYSE:RSG)


Quest resource (NASDAQ: QRHCGet a rating) and Services of the Republic (NYSE: RSGGet a rating) are both business services companies, but which is the better investment? We’ll compare the two companies based on earnings strength, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Institutional and insider ownership

30.1% of Quest Resource shares are held by institutional investors. By comparison, 58.8% of Republic Services shares are held by institutional investors. 21.9% of Quest Resource shares are held by insiders of the company. By comparison, 0.1% of Republic Services stock is held by company insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares net margins, return on equity and return on assets of Quest Resource and Republic Services.

Net margins Return on equity return on assets
quest resource 1.09% 5.64% 3.16%
Republic Services 11.42% 15.04% 5.49%

Analyst Notes

This is a summary of recent valuations and price targets for Quest Resource and Republic Services, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
quest resource 0 0 3 0 3.00
Republic Services 0 3 4 1 2.75

Quest Resource currently has a consensus target price of $11.67, suggesting a potential upside of 103.25%. Republic Services has a consensus target price of $136.00, suggesting a potential upside of 0.76%. Given Quest Resource’s stronger consensus rating and higher possible upside, stock analysts clearly believe Quest Resource is more favorable than Republic Services.

Volatility and risk

Quest Resource has a beta of 1.35, which means its stock price is 35% more volatile than the S&P 500. In contrast, Republic Services has a beta of 0.81, which means its stock price is 19% less volatile than the S&P 500.

Valuation and benefits

This chart compares revenue, earnings per share (EPS), and valuation of Quest Resource and Republic Services.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
quest resource $155.71 million 0.70 $1.69 million $0.08 71.76
Republic Services $11.30 billion 3.77 $1.29 billion $4.04 33.41

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

Summary

Republic Services beats Quest Resource on 10 out of 15 factors compared between the two stocks.

Company Profile Quest Resource (Get a rating)

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling and disposal of various waste streams and recyclable materials in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, used tires, oily water, destruction of goods, food scraps, rendered meat, waste cooking and grease trap oil, plastics, cardboard, metal, glass, mixed paper, construction debris, and a wide variety of regulated and unregulated solid, liquid and gaseous wastes. The company provides antifreeze and windshield washer fluid, dumpster and compaction equipment, and other minor ancillary services. Additionally, it offers landfill diversion services. The company’s services focus on waste streams and recyclables from mass merchandisers, grocers and other retailers; automotive service, quick lube, dealerships and collision repair; transport, logistics and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to the automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management sectors through a direct sales force and strategic partnerships. The company was previously known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.

Republic Services Company Profile (Get a rating)

Republic Services, Inc., together with its subsidiaries, provides environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste and other environmental solutions. Its collection services include curbside collection of materials for transportation to transfer stations, landfills or recycling processing centers; supply of recycling and waste containers; and rental of compactors. In addition, the company is engaged in the processing and sale of old corrugated cardboard containers, old newspaper, aluminum, glass and other materials; and the provision of landfill and transfer services. In addition, it offers non-hazardous solid and liquid material disposal and in-plant services, such as transportation and logistics. It serves small containers, large containers and residential customers. As of December 31, 2021, the company operated 356 collection operations, 239 transfer stations, 198 active landfills, 71 recycling treatment centers, 6 saltwater disposal wells and 7 deep injection wells, as well as 3 facilities treatment, recovery and disposal. in 41 states. It also operated 77 landfill gas-to-energy and renewable energy projects and had 124 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona.



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