Analyzing Secure Energy Services (OTCMKTS:SECYF) & Republic Services (NYSE:RSG)

Secure Energy Services (OTCMKTS:SECYF) and Republic Services (NYSE:RSG) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Dividends

Secure Energy Services pays an annual dividend of $0.19 per share and has a dividend yield of 1.9%. Republic Services pays an annual dividend of $2.32 per share and has a dividend yield of 1.1%. Secure Energy Services pays out 41.2% of its earnings in the form of a dividend. Republic Services pays out 40.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Republic Services has raised its dividend for 22 consecutive years.

Insider & Institutional Ownership

35.1% of Secure Energy Services shares are held by institutional investors. Comparatively, 57.7% of Republic Services shares are held by institutional investors. 0.1% of Republic Services 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 price targets for Secure Energy Services and Republic Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Secure Energy Services	0	0	0	0	N/A
Republic Services	0	9	9	0	2.50

Republic Services has a consensus price target of $212.18, indicating a potential upside of 4.02%. Given Republic Services’ higher possible upside, analysts clearly believe Republic Services is more favorable than Secure Energy Services.

Profitability

This table compares Secure Energy Services and Republic Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Secure Energy Services	N/A	N/A	N/A
Republic Services	12.11%	17.81%	6.10%

Earnings and Valuation

This table compares Secure Energy Services and Republic Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Secure Energy Services	N/A	N/A	N/A	$0.47	21.19
Republic Services	$15.57 billion	4.13	$1.73 billion	$5.70	35.79

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

Summary

Republic Services beats Secure Energy Services on 12 of the 13 factors compared between the two stocks.

About Secure Energy Services

Secure Energy Services Inc. engages in the waste management and energy infrastructure businesses primarily in Canada and the United States. It operates through three segments, Environmental Waste Management, Energy Infrastructure, and Oilfield Services. The Environmental Waste Management segment includes a network of waste processing facilities, produced water pipelines, industrial landfills, waste transfer, and metal recycling facilities. This segment also provides processing, recovery, recycling, and disposal of waste streams; and produced and waste water disposal, hazardous and non-hazardous waste processing and transfer, and treatment of crude oil and metal recycling services. The Energy Infrastructure segment includes a network of crude oil gathering pipelines, terminals, and storage facilities. This segment also engages in the transportation, optimization, terminalling, and storage of crude oil. The Oilfield Services segment engages in drilling fluid management, which include products, equipment, and services; drilling fluids and solids equipment rentals; and project management services, including equipment contracting services supporting the energy, mining, forestry, rail, pipeline, government, and civil industries across Canada. The company was founded in 2007 and is headquartered in Calgary, Canada.

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.