Contrasting Waste Management (WM) & Cemtrex (NASDAQ:CETX)
Cemtrex (NASDAQ: CETX) and Waste Management (NYSE:WM) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitabiliy.
Volatility and Risk
Cemtrex has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500. Comparatively, Waste Management has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Cemtrex and Waste Management, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Waste Management has a consensus target price of $73.58, indicating a potential downside of 0.55%. Given Waste Management’s stronger consensus rating and higher probable upside, analysts clearly believe Waste Management is more favorable than Cemtrex.
Cemtrex pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Waste Management pays an annual dividend of $1.70 per share and has a dividend yield of 2.3%. Cemtrex pays out 3.5% of its earnings in the form of a dividend. Waste Management pays out 62.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Waste Management has increased its dividend for 13 consecutive years. Waste Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Cemtrex and Waste Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Cemtrex and Waste Management’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cemtrex||$121.38 million||0.29||$9.32 million||$0.57||6.19|
|Waste Management||$13.87 billion||2.36||$3.78 billion||$2.74||27.00|
Waste Management has higher revenue and earnings than Cemtrex. Cemtrex is trading at a lower price-to-earnings ratio than Waste Management, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
8.5% of Cemtrex shares are held by institutional investors. Comparatively, 75.6% of Waste Management shares are held by institutional investors. 47.0% of Cemtrex 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Waste Management beats Cemtrex on 13 of the 17 factors compared between the two stocks.
Cemtrex Company Profile
Cemtrex, Inc. is a diversified technology company, which provides solutions to industrial and manufacturing needs. The Company provides manufacturing services of electronic system assemblies; provides broad-based industrial services, instruments and emission monitors for industrial processes, and provides industrial air filtration and environmental control systems. It operates through two segments: Electronics Manufacturing Services (EMS) segment and the Industrial Products & Services (IPS) segment. The Company, through its electronics manufacturing services (EMS) group, provides end to end electronic manufacturing services, which include product design and sustaining engineering services, printed circuit board assembly and production, cabling and wire harnessing, systems integration, testing services, and assembled electronic products. The Industrial Products & Services segment provides single-source services for in plant equipment erection, relocation and maintenance.
Waste Management Company Profile
Waste Management, Inc. (WM) is a holding company. The Company, through its subsidiaries, is a provider of waste management environmental services. The Company’s segments include Solid Waste and Other. The Company’s Solid Waste segment includes its solid waste business. The Other segment includes its Strategic Business Solutions (WMSBS) organization; its landfill gas-to-energy operations and third-party subcontract and administration services managed by its Energy and Environmental Services and WM Renewable Energy organizations; its recycling brokerage services, and its service offerings and solutions, such as portable self-storage and long distance moving services, fluorescent lamp recycling and interests it holds in oil and gas producing properties. As of December 31, 2016, the Company owned or operated 243 solid waste landfills and five secure hazardous waste landfills. Its recycling brokerage services involve managing the marketing of recyclable materials for third parties.
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