WM vs WCN

For growth investors, Waste Management, Inc.

(WM) is the stronger pick with 14. 2% revenue growth year-over-year, versus 6. 5% for Waste Connections, Inc. (WCN). Waste Management, Inc. (WM) offers the better valuation at 32. 9x trailing P/E (26. 9x forward), making it the more compelling value choice. Analysts rate Waste Management, Inc. (WM) a "Buy" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Waste Management, Inc.

(WM) is the cheapest at 32. 9x versus Waste Connections, Inc. at 36. 7x. On forward P/E, Waste Management, Inc. is actually cheaper at 26. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Waste Connections, Inc. wins at 0. 70x versus Waste Management, Inc. 's 1. 96x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Waste Management, Inc.

(WM) delivered a total return of +66. 0%, compared to +29. 2% for Waste Connections, Inc. (WCN). Over 10 years, the gap is even starker: WM returned +302. 8% versus WCN's +257. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Waste Management, Inc.

(WM) is the lower-risk stock at -0. 17β versus Waste Connections, Inc. 's -0. 03β — meaning WCN is approximately -81% more volatile than WM relative to the S&P 500. On balance sheet safety, Waste Connections, Inc. (WCN) carries a lower debt/equity ratio of 114% versus 2% for Waste Management, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Waste Management, Inc.

(WM) is pulling ahead at 14. 2% versus 6. 5% for Waste Connections, Inc. (WCN). On earnings-per-share growth, the picture is similar: Waste Connections, Inc. grew EPS 74. 9% year-over-year, compared to -1. 6% for Waste Management, Inc.. Over a 3-year CAGR, WCN leads at 9. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Waste Connections, Inc.

(WCN) is the more profitable company, earning 11. 4% net margin versus 10. 7% for Waste Management, Inc. — meaning it keeps 11. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WM leads at 18. 3% versus 18. 1% for WCN. At the gross margin level — before operating expenses — WCN leads at 39. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Waste Connections, Inc. (WCN) is the more undervalued stock at a PEG of 0. 70x versus Waste Management, Inc. 's 1. 96x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Waste Management, Inc. (WM) trades at 26. 9x forward P/E versus 27. 9x for Waste Connections, Inc. — 1. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WCN: 33. 0% to $204. 08.

All stocks in this comparison pay dividends.

Waste Management, Inc. (WM) offers the highest yield at 1. 5%, versus 0. 9% for Waste Connections, Inc. (WCN).

For long-horizon retirement investors, Waste Management, Inc.

(WM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 17), 1. 5% yield, +302. 8% 10Y return). Both have compounded well over 10 years (WM: +302. 8%, WCN: +257. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.