Critical Contrast: JBDI (NASDAQ:JBDI) vs. Waste Connections (NYSE:WCN)

JBDI (NASDAQ:JBDI) and Waste Connections (NYSE:WCN) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares JBDI and Waste Connections”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBDI	$8.44 million	2.46	-$2.72 million	N/A	N/A
Waste Connections	$9.35 billion	4.55	$617.57 million	$2.40	69.20

Waste Connections has higher revenue and earnings than JBDI.

Institutional and Insider Ownership

86.1% of Waste Connections shares are owned by institutional investors. 0.3% of Waste Connections shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares JBDI and Waste Connections’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBDI	N/A	N/A	N/A
Waste Connections	6.65%	16.07%	6.37%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for JBDI and Waste Connections, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBDI	1	0	0	0	1.00
Waste Connections	1	3	13	5	3.00

Waste Connections has a consensus target price of $210.63, indicating a potential upside of 26.82%. Given Waste Connections’ stronger consensus rating and higher probable upside, analysts plainly believe Waste Connections is more favorable than JBDI.

Volatility and Risk

JBDI has a beta of -2.1, indicating that its stock price is 310% less volatile than the S&P 500. Comparatively, Waste Connections has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

Waste Connections beats JBDI on 13 of the 13 factors compared between the two stocks.

About JBDI

JBDI Holdings Limited engages in the trading of reconditioned and recycling containers in Singapore and the Southeast Asia region. The company offers reconditioning and recycling drums, including open top drums, metal drums, plastic drums, plastic carboys, and intermediate bulk containers, as well as new drums, and collects waste drums and related products. It serves solvent, chemical, petroleum, and edible product oil industries. The company was founded in 1983 and is based in Singapore. JBDI Holdings Limited operates as a subsidiary of E U Holdings Pte. Ltd.

About Waste Connections

Waste Connections, Inc. provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. It offers collection services to residential, commercial, municipal, industrial, and exploration and production (E&P) customers; landfill disposal services; and recycling services for various recyclable materials, including compost, cardboard, mixed paper, plastic containers, glass bottles, and ferrous and aluminum metals. The company owns and operates transfer stations that receive compact and/or load waste to be transported to landfills or treatment facilities through truck, rail, or barge; and intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest through a network of intermodal facilities. In addition, it provides E&P waste treatment, recovery, and disposal services for waste resulting from oil and natural gas exploration and production activity, such as drilling fluids, drill cuttings, completion fluids, and flowback water; production wastes and produced water during a well's operating life; contaminated soils that require treatment during site reclamation; and substances, which require clean-up after a spill, reserve pit clean-up, or pipeline rupture. Further, the company offers leasing services to its customers. Waste Connections, Inc. was founded in 1997 and is based in Woodbridge, Canada.