Financial Analysis: DiDi Global (OTCMKTS:DIDIY) versus GFL Environmental (NYSE:GFL)

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

Analyst Ratings

This is a summary of recent ratings for GFL Environmental and DiDi Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GFL Environmental	2	2	11	0	2.60
DiDi Global	0	1	2	0	2.67

GFL Environmental presently has a consensus price target of $54.25, indicating a potential upside of 24.09%. DiDi Global has a consensus price target of $10.00, indicating a potential upside of 167.38%. Given DiDi Global’s stronger consensus rating and higher possible upside, analysts clearly believe DiDi Global is more favorable than GFL Environmental.

Insider and Institutional Ownership

64.7% of GFL Environmental shares are owned by institutional investors. Comparatively, 1.8% of DiDi Global shares are owned by institutional investors. 8.7% of GFL Environmental shares are owned by insiders. Comparatively, 9.5% of DiDi Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares GFL Environmental and DiDi Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GFL Environmental	$4.73 billion	3.33	$2.74 billion	($0.53)	-82.49
DiDi Global	$31.54 billion	0.54	$138.08 million	($0.02)	-187.00

GFL Environmental has higher earnings, but lower revenue than DiDi Global. DiDi Global is trading at a lower price-to-earnings ratio than GFL Environmental, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GFL Environmental has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, DiDi Global has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GFL Environmental	-3.28%	4.14%	1.55%
DiDi Global	0.31%	2.16%	1.31%

Summary

GFL Environmental beats DiDi Global on 8 of the 14 factors compared between the two stocks.

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.

About DiDi Global

DiDi Global Inc. operates a mobility technology platform that provides ride hailing and other services in the People's Republic of China, Brazil, Mexico, and internationally. It offers ride hailing, taxi hailing, chauffeur, hitch, and other forms of shared mobility services; auto solutions comprising leasing, refueling, and maintenance and repair services; electric vehicle leasing services; and bike and e-bike sharing, intra-city freight, food delivery, and financial services. The company was formerly known as Xiaoju Kuaizhi Inc. and changed its name to DiDi Global Inc. in June 2021. DiDi Global Inc. was founded in 2012 and is headquartered in Beijing, China.