Critical Analysis: Republic Services (RSG) & Alanco Technologies (ALAN)

Alanco Technologies (OTCMKTS:ALAN) and Republic Services (NYSE:RSG) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Dividends

Republic Services pays an annual dividend of $1.50 per share and has a dividend yield of 2.1%. Alanco Technologies does not pay a dividend. Republic Services pays out 61.7% of its earnings in the form of a dividend. Republic Services has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Alanco Technologies and Republic Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alanco Technologies 0 0 0 0 N/A
Republic Services 0 5 3 0 2.38

Republic Services has a consensus target price of $73.50, suggesting a potential upside of 2.61%. Given Republic Services’ higher possible upside, analysts plainly believe Republic Services is more favorable than Alanco Technologies.

Valuation and Earnings

This table compares Alanco Technologies and Republic Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alanco Technologies $190,000.00 0.26 -$1.59 million N/A N/A
Republic Services $10.04 billion 2.32 $1.28 billion $2.43 29.48

Republic Services has higher revenue and earnings than Alanco Technologies.

Institutional and Insider Ownership

60.9% of Republic Services shares are held by institutional investors. 16.4% of Alanco Technologies shares are held by company insiders. Comparatively, 0.3% of Republic Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alanco Technologies and Republic Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alanco Technologies N/A N/A N/A
Republic Services 13.90% 12.11% 4.52%

Volatility and Risk

Alanco Technologies has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, Republic Services has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Summary

Republic Services beats Alanco Technologies on 11 of the 14 factors compared between the two stocks.

Alanco Technologies Company Profile

Alanco Technologies, Inc., together with its subsidiaries, engages in the treatment and disposal of produced water generated as a byproduct from oil and natural gas producers in Western Colorado. It is also involved in oil reclamation activities. The company was founded in 1969 and is headquartered in Scottsdale, Arizona.

Republic Services Company Profile

Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico. The company's collection services include curbside collection of waste for transport to transfer stations; supply of waste containers; and renting of compactors. It is also involved in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; temporary waste collection services; and provision of landfill services. As of December 31, 2017, the company operated through 343 collection operations, 204 transfer stations, 195 active landfills, 90 recycling centers, and 11 salt water disposal wells, as well as 7 treatment, recovery, and disposal facilities in 40 states and Puerto Rico. It also operated 68 landfill gas and renewable energy projects and had 124 closed landfills. The company was founded in 1996 and is based in Phoenix, Arizona.

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