MEG vs CWST

For growth investors, Montrose Environmental Group, Inc.

(MEG) is the stronger pick with 19. 3% revenue growth year-over-year, versus 18. 0% for Casella Waste Systems, Inc. (CWST). Casella Waste Systems, Inc. (CWST) offers the better valuation at 712. 1x trailing P/E (63. 9x forward), making it the more compelling value choice. Analysts rate Montrose Environmental Group, Inc. (MEG) a "Buy" — based on 12 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 forward P/E, Casella Waste Systems, Inc.

is actually cheaper at 63. 9x.

Over the past 5 years, Casella Waste Systems, Inc.

(CWST) delivered a total return of +25. 7%, compared to -61. 5% for Montrose Environmental Group, Inc. (MEG). Over 10 years, the gap is even starker: CWST returned +1059% versus MEG's -1. 4%. 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), Casella Waste Systems, Inc.

(CWST) is the lower-risk stock at 0. 32β versus Montrose Environmental Group, Inc. 's 1. 82β — meaning MEG is approximately 464% more volatile than CWST relative to the S&P 500. On balance sheet safety, Casella Waste Systems, Inc. (CWST) carries a lower debt/equity ratio of 79% versus 80% for Montrose Environmental Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Montrose Environmental Group, Inc.

(MEG) is pulling ahead at 19. 3% versus 18. 0% for Casella Waste Systems, Inc. (CWST). On earnings-per-share growth, the picture is similar: Montrose Environmental Group, Inc. grew EPS 93. 7% year-over-year, compared to -47. 8% for Casella Waste Systems, Inc.. Over a 3-year CAGR, CWST leads at 19. 2% 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.

Casella Waste Systems, Inc.

(CWST) is the more profitable company, earning 0. 4% net margin versus -0. 1% for Montrose Environmental Group, Inc. — meaning it keeps 0. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CWST leads at 4. 9% versus 1. 5% for MEG. At the gross margin level — before operating expenses — MEG leads at 34. 1%, 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.

On forward earnings alone, Casella Waste Systems, Inc.

(CWST) trades at 63. 9x forward P/E versus 172. 3x for Montrose Environmental Group, Inc. — 108. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MEG: 123. 5% to $49. 33.

In this comparison, MEG (0.

5% yield) pays a dividend. CWST does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Casella Waste Systems, Inc.

(CWST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 32), +1059% 10Y return). Montrose Environmental Group, Inc. (MEG) carries a higher beta of 1. 82 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CWST: +1059%, MEG: -1. 4%), 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.

MEG pays a dividend while CWST does not, making them suitable for different income and tax situations. 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.