Avalon (NYSE:AWX) vs. Quest Resource (NASDAQ:QRHC) Head to Head Contrast

Quest Resource (NASDAQ:QRHCGet Rating) and Avalon (NYSE:AWXGet Rating) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Quest Resource and Avalon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quest Resource 1.09% 5.64% 3.16%
Avalon 2.80% 5.10% 2.50%

Analyst Ratings

This is a summary of current ratings and recommmendations for Quest Resource and Avalon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quest Resource 0 0 3 0 3.00
Avalon 0 0 0 0 N/A

Quest Resource currently has a consensus price target of $11.67, indicating a potential upside of 87.27%. Given Quest Resource’s higher possible upside, research analysts plainly believe Quest Resource is more favorable than Avalon.

Volatility & Risk

Quest Resource has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Avalon has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Quest Resource and Avalon’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quest Resource $155.71 million 0.76 $1.69 million $0.08 77.88
Avalon $70.38 million 0.19 $1.97 million $0.50 6.90

Avalon has lower revenue, but higher earnings than Quest Resource. Avalon is trading at a lower price-to-earnings ratio than Quest Resource, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

30.1% of Quest Resource shares are held by institutional investors. Comparatively, 10.7% of Avalon shares are held by institutional investors. 23.5% of Quest Resource shares are held by insiders. Comparatively, 20.1% of Avalon 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.

Summary

Quest Resource beats Avalon on 10 of the 13 factors compared between the two stocks.

Quest Resource Company Profile (Get Rating)

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation was incorporated in 2002 and is based in The Colony, Texas.

Avalon Company Profile (Get Rating)

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal, and governmental customers in the United States. It operates in Waste Management Services, and Golf and Related Operations segments. The Waste Management Services segment offers hazardous and nonhazardous waste disposal brokerage and management services; and captive landfill management services, as well as engages in the salt water injection well operations. This segment also provides turnkey services, including daily operations, facilities management, and management reporting; and sells construction mats. The Golf and Related Operations segment operates and manages four golf courses and related clubhouses, a hotel, and a travel agency. Its golf and country club facilities provide swimming pools, fitness centers, tennis courts, dining, and banquet and conference facilities, as well as spa services. The company also owns and operates hotel under the brand of The Grand Resort, which provides various facilities, such as hotel, indoor and outdoor swimming pool, bath, fitness center, restaurants, bars, cigar lounge, salon and spa, banquet and conference facilities, and adjoining tennis center. Avalon Holdings Corporation was founded in 1998 and is headquartered in Warren, Ohio.

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