Heritage-Crystal Clean (NASDAQ: HCCI) and Advanced Disposal Services (NASDAQ:ADSW) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Heritage-Crystal Clean and Advanced Disposal Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage-Crystal Clean 0 1 4 0 2.80
Advanced Disposal Services 0 2 8 0 2.80

Heritage-Crystal Clean currently has a consensus target price of $20.40, indicating a potential upside of 8.22%. Advanced Disposal Services has a consensus target price of $25.22, indicating a potential upside of 9.81%. Given Advanced Disposal Services’ higher probable upside, analysts plainly believe Advanced Disposal Services is more favorable than Heritage-Crystal Clean.

Earnings and Valuation

This table compares Heritage-Crystal Clean and Advanced Disposal Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Heritage-Crystal Clean $355.46 million 1.20 $41.31 million $0.76 24.80
Advanced Disposal Services $1.44 billion 1.41 $394.80 million N/A N/A

Advanced Disposal Services has higher revenue and earnings than Heritage-Crystal Clean.

Profitability

This table compares Heritage-Crystal Clean and Advanced Disposal Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage-Crystal Clean 4.92% 7.69% 5.18%
Advanced Disposal Services -0.05% -0.10% -0.02%

Institutional and Insider Ownership

52.8% of Heritage-Crystal Clean shares are owned by institutional investors. 14.8% of Heritage-Crystal Clean shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About Heritage-Crystal Clean

Heritage-Crystal Clean, Inc. provides full-service parts cleaning, containerized waste management, used oil collection, vacuum truck services and antifreeze recycling. The Company owns and operates a used oil re-refinery. The Company operates through two segments: Environmental Services and Oil Business. The Company provides hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle maintenance sectors. The Environmental Services segment consists of the Company’s parts cleaning, containerized waste management, vacuum truck services, used antifreeze recycling activities and field services. The Oil Business segment consists of used oil collection activities, sale of recycled fuel oil, re-refining activities, and oil filter removal and disposal services. Through its re-refining process, the Company recycles used oil into lubricant base oil and by-products, and it is a supplier to firms that produce and market finished lubricants.

About Advanced Disposal Services

Advanced Disposal Services, Inc. is an integrated provider of non-hazardous solid waste collection, transfer, recycling and disposal services operating primarily in secondary markets or under exclusive arrangements. The Company’s segments include South, East, Midwest and Corporate. As of December 31, 2016, the Company had its presence in 16 states across the Midwest, South and East regions of the United States, as well as in the Commonwealth of the Bahamas, served approximately 2.7 million residential customers and over 200,000 commercial and industrial (C&I) customers through its network of 90 collection operations, 72 transfer stations, 21 owned or operated recycling facilities and 39 owned or operated active landfills. The Company’s vertically integrated environmental services operations can be classified into three lines of business: collection services, disposal services and recycling services. The disposal services include transfer stations and landfills.

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