Team (NYSE:TISI) and Waste Management (NYSE:WM) Financial Review
by Sarita Garza · The Markets DailyTeam (NYSE:TISI – Get Free Report) and Waste Management (NYSE:WM – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Valuation and Earnings
This table compares Team and Waste Management”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Team | $896.48 million | 0.11 | -$49.21 million | ($9.42) | -2.34 |
| Waste Management | $25.20 billion | 3.56 | $2.71 billion | $7.06 | 31.83 |
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.
Profitability
This table compares Team and Waste Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Team | -3.73% | N/A | -4.68% |
| Waste Management | 11.11% | 31.68% | 6.81% |
Analyst Ratings
This is a breakdown of current ratings for Team and Waste Management, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Team | 1 | 0 | 0 | 0 | 1.00 |
| Waste Management | 0 | 7 | 13 | 0 | 2.65 |
Waste Management has a consensus price target of $258.89, suggesting a potential upside of 15.20%. Given Waste Management’s stronger consensus rating and higher probable upside, analysts plainly believe Waste Management is more favorable than Team.
Volatility and Risk
Team has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Waste Management has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
Institutional and Insider Ownership
46.6% of Team shares are held by institutional investors. Comparatively, 80.4% of Waste Management shares are held by institutional investors. 8.8% of Team shares are held by company insiders. Comparatively, 0.2% of Waste Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Waste Management beats Team on 12 of the 14 factors compared between the two stocks.
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.
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.