Republic Services (NYSE:RSG) vs. Healthcare Services Group (NASDAQ:HCSG) Head-To-Head Review

Republic Services (NYSE:RSG) and Healthcare Services Group (NASDAQ:HCSG) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Republic Services and Healthcare Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Services	12.94%	18.69%	6.49%
Healthcare Services Group	6.59%	18.97%	11.96%

Analyst Ratings

This is a summary of current ratings for Republic Services and Healthcare Services Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Services	0	9	13	0	2.59
Healthcare Services Group	0	4	6	0	2.60

Republic Services currently has a consensus price target of $243.73, indicating a potential upside of 8.90%. Healthcare Services Group has a consensus price target of $26.67, indicating a potential upside of 27.23%. Given Healthcare Services Group’s stronger consensus rating and higher probable upside, analysts plainly believe Healthcare Services Group is more favorable than Republic Services.

Institutional & Insider Ownership

57.7% of Republic Services shares are owned by institutional investors. Comparatively, 98.0% of Healthcare Services Group shares are owned by institutional investors. 0.1% of Republic Services shares are owned by insiders. Comparatively, 2.9% of Healthcare Services Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Republic Services and Healthcare Services Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Services	$16.59 billion	4.13	$2.14 billion	$7.06	31.70
Healthcare Services Group	$1.84 billion	0.78	$59.06 million	$1.72	12.19

Republic Services has higher revenue and earnings than Healthcare Services Group. Healthcare Services Group is trading at a lower price-to-earnings ratio than Republic Services, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Republic Services has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Healthcare Services Group has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

About Republic Services

Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States and Canada. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. The company was incorporated in 1996 and is based in Phoenix, Arizona.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.