Financial Analysis: Team (NYSE:TISI) and Waste Management (NYSE:WM)

Waste Management (NYSE:WM) and Team (NYSE:TISI) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Waste Management and Team’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waste Management	11.11%	31.68%	6.81%
Team	-3.73%	N/A	-4.68%

Risk & Volatility

Waste Management has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Team has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

80.4% of Waste Management shares are held by institutional investors. Comparatively, 46.6% of Team shares are held by institutional investors. 0.2% of Waste Management shares are held by insiders. Comparatively, 8.8% of Team shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Waste Management and Team, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waste Management	0	7	13	0	2.65
Team	1	0	0	0	1.00

Waste Management presently has a consensus target price of $258.89, suggesting a potential upside of 15.64%. Given Waste Management’s stronger consensus rating and higher probable upside, equities analysts plainly believe Waste Management is more favorable than Team.

Earnings and Valuation

This table compares Waste Management and Team”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waste Management	$25.20 billion	3.55	$2.71 billion	$7.06	31.71
Team	$896.48 million	0.12	-$49.21 million	($9.42)	-2.41

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

Summary

Waste Management beats Team on 12 of the 14 factors compared between the two stocks.

About Waste Management

Waste Management, Inc., through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns and operates transfer stations, as well as owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity. As of December 31, 2022, the company owned or operated 254 solid waste landfills, five secure hazardous waste landfills, 97 MRFs, and 337 transfer stations. It also provides materials processing and commodities recycling services at its MRFs, where cardboard, paper, glass, metals, plastics, construction and demolition materials, and other recycling commodities are recovered for resale or redirected for other purposes; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions. In addition, the company offers construction and remediation services; services related with the disposal of fly ash, and residue generated from the combustion of coal and other fuel stocks; in-plant services comprising full-service waste management solutions and consulting services; and specialized disposal services for oil and gas exploration and production operations. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is headquartered in Houston, Texas.

About Team

Team, Inc., together with its subsidiaries, provides a suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services in the United States, Canada, Europe, and internationally. It operates through Inspection and Heat Treating (IHT) and Mechanical Services (MS) segments. The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. This segment also provides long-range guided ultrasonic, phased array ultrasonic testing, terminals and storage inspection and management program, rope access, mechanical and pipeline integrity, and heat treating services. The MS segment offers engineered composite repair, emissions control/compliance, hot tapping, valve insertion, field machining, bolted joint integrity, vapor barrier plug and weld testing, and valve management services, as well as leak repair services. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, Texas.