Contrasting Covanta (CVA) and Its Competitors
Covanta (NYSE: CVA) is one of 20 publicly-traded companies in the “Waste Management, Disposal & Recycling Services” industry, but how does it contrast to its peers? We will compare Covanta to related companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, valuation and risk.
Risk and Volatility
Covanta has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Covanta’s peers have a beta of 0.63, suggesting that their average stock price is 37% less volatile than the S&P 500.
This is a summary of current recommendations for Covanta and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Covanta presently has a consensus target price of $17.79, indicating a potential upside of 16.63%. As a group, “Waste Management, Disposal & Recycling Services” companies have a potential upside of 8.42%. Given Covanta’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Covanta is more favorable than its peers.
This table compares Covanta and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Covanta and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Covanta||$1.70 billion||-$4.00 million||-29.90|
|Covanta Competitors||$850.65 million||$28.19 million||150.46|
Covanta has higher revenue, but lower earnings than its peers. Covanta is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Covanta pays an annual dividend of $1.00 per share and has a dividend yield of 6.6%. Covanta pays out -196.1% of its earnings in the form of a dividend. As a group, “Waste Management, Disposal & Recycling Services” companies pay a dividend yield of 1.8% and pay out 98.5% of their earnings in the form of a dividend. Covanta is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
94.8% of Covanta shares are held by institutional investors. Comparatively, 53.0% of shares of all “Waste Management, Disposal & Recycling Services” companies are held by institutional investors. 11.6% of Covanta shares are held by company insiders. Comparatively, 12.3% of shares of all “Waste Management, Disposal & Recycling Services” companies 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.
Covanta beats its peers on 11 of the 14 factors compared.
Covanta Company Profile
Covanta Holding Corporation is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. The Company operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada. Outside of North America, the Company is constructing an energy-from-waste (EfW) facility in Dublin, Ireland. The Company holds interests in an EfW facility in Italy and an infrastructure business in China, which is engaged in EfW operations. These EfW projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the EfW process.
Receive News & Ratings for Covanta Holding Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Covanta Holding Corporation and related companies with MarketBeat.com's FREE daily email newsletter.