Critical Analysis: GFL Environmental (NYSE:GFL) and Brambles (OTCMKTS:BXBLY)

Brambles (OTCMKTS:BXBLY) and GFL Environmental (NYSE:GFL) are both large-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

Brambles pays an annual dividend of $0.90 per share and has a dividend yield of 3.3%. GFL Environmental pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. GFL Environmental pays out -13.2% of its earnings in the form of a dividend. GFL Environmental has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Brambles and GFL Environmental”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brambles	$7.04 billion	2.61	$954.00 million	N/A	N/A
GFL Environmental	$4.73 billion	3.17	$2.74 billion	($0.53)	-78.43

GFL Environmental has lower revenue, but higher earnings than Brambles.

Volatility and Risk

Brambles has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, GFL Environmental has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Brambles and GFL Environmental, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brambles	1	1	1	0	2.00
GFL Environmental	2	2	11	0	2.60

Brambles currently has a consensus target price of $19.34, suggesting a potential downside of 29.83%. GFL Environmental has a consensus target price of $54.75, suggesting a potential upside of 31.71%. Given GFL Environmental’s stronger consensus rating and higher probable upside, analysts plainly believe GFL Environmental is more favorable than Brambles.

Insider & Institutional Ownership

0.0% of Brambles shares are held by institutional investors. Comparatively, 64.7% of GFL Environmental shares are held by institutional investors. 8.7% of GFL Environmental shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Brambles and GFL Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brambles	N/A	N/A	N/A
GFL Environmental	-3.28%	4.14%	1.55%

Summary

GFL Environmental beats Brambles on 12 of the 15 factors compared between the two stocks.

About Brambles

Brambles Limited operates as a supply-chain logistics company. It operates through CHEP North America and Latin America; CHEP Europe, Middle East, Africa and India; and CHEP Australia, New Zealand and Asia, excluding India segments. The company engages in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates, and containers. It serves customers in the fast-moving consumer goods, fresh produce, beverage, retail, and general manufacturing industries. Brambles Limited was founded in 1875 and is based in Sydney, Australia.

About GFL Environmental

GFL Environmental Inc. offers non-hazardous solid waste management and environmental services in Canada and the United States. It offers solid waste management, liquid waste management, and soil remediation services, including collection, transportation, transfer, recycling, and disposal services for municipal, residential, and commercial, and industrial customers. The company was incorporated in 2007 and is headquartered in Vaughan, Canada.