Contrasting Casella Waste Systems (NASDAQ:CWST) and Openlane (NYSE:OPLN)

Casella Waste Systems (NASDAQ:CWST) and Openlane (NYSE:OPLN) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Profitability

This table compares Casella Waste Systems and Openlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Casella Waste Systems	0.29%	5.32%	2.49%
Openlane	9.67%	12.81%	3.62%

Volatility and Risk

Casella Waste Systems has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Openlane has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

99.5% of Casella Waste Systems shares are held by institutional investors. Comparatively, 99.8% of Openlane shares are held by institutional investors. 3.8% of Casella Waste Systems shares are held by insiders. Comparatively, 2.2% of Openlane shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Casella Waste Systems and Openlane, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casella Waste Systems	1	3	4	1	2.56
Openlane	0	3	4	0	2.57

Casella Waste Systems presently has a consensus price target of $105.83, suggesting a potential upside of 13.40%. Openlane has a consensus price target of $43.83, suggesting a potential upside of 12.25%. Given Casella Waste Systems’ higher possible upside, research analysts plainly believe Casella Waste Systems is more favorable than Openlane.

Valuation & Earnings

This table compares Casella Waste Systems and Openlane”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casella Waste Systems	$1.84 billion	3.23	$7.87 million	$0.09	1,037.00
Openlane	$1.93 billion	2.48	$177.70 million	($0.85)	-45.94

Openlane has higher revenue and earnings than Casella Waste Systems. Openlane is trading at a lower price-to-earnings ratio than Casella Waste Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Openlane beats Casella Waste Systems on 8 of the 14 factors compared between the two stocks.

About Casella Waste Systems

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company provides non-hazardous solid waste services, including collections, transfer stations, recycling, and disposal operations. In addition, it markets materials, including fibers, corrugated cardboard, newsprint, plastics, glass, ferrous, and aluminum metals. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.

About Openlane

OPENLANE Inc. provides sellers and buyers across the wholesale used vehicle industry with technology-driven remarketing solutions. The company’s end-to-end platform supports whole car, financing, logistics and other ancillary and related services. OPENLANE Inc., formerly known as KAR Auction Services Inc., is based in CARMEL, Ind.