Nalco Holding (NYSE: NLC) and Clean Harbors (NYSE:CLH) are both mid-cap environmental services & equipment – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Volatility & Risk
Nalco Holding has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Clean Harbors has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
This table compares Nalco Holding and Clean Harbors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
94.0% of Clean Harbors shares are owned by institutional investors. 8.9% of Clean Harbors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Nalco Holding and Clean Harbors’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Clean Harbors||$2.76 billion||1.08||-$39.87 million||$0.07||748.96|
Nalco Holding has higher revenue, but lower earnings than Clean Harbors. Nalco Holding is trading at a lower price-to-earnings ratio than Clean Harbors, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Nalco Holding and Clean Harbors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Clean Harbors has a consensus price target of $61.00, indicating a potential upside of 16.37%. Given Clean Harbors’ higher possible upside, analysts plainly believe Clean Harbors is more favorable than Nalco Holding.
Nalco Holding Company Profile
Nalco Holding Company provides water, energy, air and process technologies and services. It provides service for water, energy and air through the worldwide manufacture and sale of specialized service chemical programs. This includes production and service related to the sale and application of chemicals and technology used in water treatment, pollution control, energy conservation, oil production and refining, steelmaking, papermaking, mining, and other industrial processes. It has three segments: Water Services, Paper Services and Energy Services. In July 2010, it acquired all of the business assets of Fabrication Technologies, Inc. (FabTech), which is a North American supplier of enhanced oil recovery (EOR) mixing and injection equipment. In April 2010, it purchased the assets of Res-Kem Corp. and General Water Services Corp. In January 2010, Nalco acquired a 50.1% controlling financial interest in Nalco Africa. In December 2011, it merged with Ecolab, Inc.
Clean Harbors Company Profile
Clean Harbors, Inc. is a provider of environmental, energy and industrial services throughout North America. The Company is also a re-refiner and recycler of used oil in the world and a provider of parts cleaning and related environmental services to commercial, industrial and automotive customers in North America. The Company operates in six segments: Technical Services, Industrial Services, Field Services, Safety-Kleen, Oil and Gas Field Services, and Lodging Services. The Company is also a service provider in the recovery and decontamination of pollutants. The Company provides services to protect the ozone layer from the effects of chlorofluorocarbons (CFCs). It offers brands, such as Performance Plus brand and green brand EcoPower. The Company also offers CleanPack services, which include the collection, identification and categorization, packaging, transportation and disposal of laboratory chemicals and household hazardous waste. It also provides hydro excavation services.
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