Head-To-Head Analysis: Casella Waste Systems (CWST) and MagneGas (MNGA)

Casella Waste Systems (NASDAQ: CWST) and MagneGas (NASDAQ:MNGA) are both small-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Volatility and Risk

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Casella Waste Systems has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, MagneGas has a beta of -0.36, indicating that its stock price is 136% less volatile than the S&P 500.

Insider & Institutional Ownership

81.2% of Casella Waste Systems shares are owned by institutional investors. Comparatively, 40.5% of MagneGas shares are owned by institutional investors. 11.5% of Casella Waste Systems shares are owned by company insiders. Comparatively, 10.0% of MagneGas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Casella Waste Systems -3.64% -58.61% 4.76%
MagneGas -371.23% -277.02% -126.92%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Casella Waste Systems and MagneGas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casella Waste Systems 0 0 3 0 3.00
MagneGas 0 0 1 0 3.00

Casella Waste Systems currently has a consensus price target of $21.33, indicating a potential downside of 12.93%. MagneGas has a consensus price target of $6.00, indicating a potential upside of 621.76%. Given MagneGas’ higher possible upside, analysts plainly believe MagneGas is more favorable than Casella Waste Systems.

Earnings and Valuation

This table compares Casella Waste Systems and MagneGas’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casella Waste Systems $599.31 million 1.73 -$21.79 million $0.67 36.57
MagneGas $3.55 million 0.41 -$17.46 million ($44.98) -0.02

MagneGas has lower revenue, but higher earnings than Casella Waste Systems. MagneGas 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

Casella Waste Systems beats MagneGas on 11 of the 13 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 northeastern United States. The company operates through Eastern Region, Western Region, Recycling, and Other segments. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, and industrial customers. The company provides a range of non-hazardous solid waste services, including collections, transfer stations, material recovery facilities, and disposal facilities. It also processes and markets recyclable metals, aluminum, plastics, and paper and corrugated cardboard, as well as recyclables purchased from third-parties. In addition, the company is involved in commodity brokerage operations. As of January 31, 2018, it owned and/or operated 32 solid waste collection operations, 47 transfer stations, 18 recycling facilities, 9 Subtitle D landfills, 4 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials. Casella Waste Systems, Inc. was founded in 1975 and is headquartered in Rutland, Vermont.

About MagneGas

MagneGas Corporation, an alternative energy company, creates and produces hydrogen based alternative fuel through the gasification of liquid and liquid waste in the United States and internationally. The company produces gas bottled in cylinders and distributes to the metalworking market as an alternative to acetylene. It offers MagneGas2, a hydrogen based fuel for metal cutting; and MagneTote, a metal cutting torch system primarily used in the firefighting industry. It also provides Plasma Arc Flow refineries, which are machines that produce MagneGas2. In addition, the company sells and licenses the plasma arc technology for the processing of liquid waste. The company was founded in 2007 and is headquartered in Clearwater, Florida.

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