Seek Returns logo

WM vs. ZTO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at WM and ZTO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

WM is a standard domestic listing, while ZTO trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolWMZTO
Company NameWaste Management, Inc.ZTO Express (Cayman) Inc.
CountryUnited StatesChina
GICS SectorIndustrialsIndustrials
GICS IndustryCommercial Services & SuppliesAir Freight & Logistics
Market Capitalization91.45 billion USD15.86 billion USD
ExchangeNYSENYSE
Listing DateJune 22, 1988October 27, 2016
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of WM and ZTO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

WM vs. ZTO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolWMZTO
5-Day Price Return1.26%-1.28%
13-Week Price Return-3.03%13.58%
26-Week Price Return-0.58%1.98%
52-Week Price Return8.42%2.50%
Month-to-Date Return-0.93%1.84%
Year-to-Date Return12.50%2.25%
10-Day Avg. Volume2.07M3.39M
3-Month Avg. Volume1.71M2.52M
3-Month Volatility16.48%39.66%
Beta0.660.85

Profitability

Return on Equity (TTM)

WM

31.93%

Commercial Services & Supplies Industry

Max
31.93%
Q3
18.03%
Median
9.43%
Q1
6.44%
Min
-9.69%

In the upper quartile for the Commercial Services & Supplies industry, WM’s Return on Equity of 31.93% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ZTO

15.30%

Air Freight & Logistics Industry

Max
35.27%
Q3
18.47%
Median
11.35%
Q1
7.21%
Min
2.53%

ZTO’s Return on Equity of 15.30% is on par with the norm for the Air Freight & Logistics industry, indicating its profitability relative to shareholder equity is typical for the sector.

WM vs. ZTO: A comparison of their Return on Equity (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Net Profit Margin (TTM)

WM

11.36%

Commercial Services & Supplies Industry

Max
17.53%
Q3
9.01%
Median
5.20%
Q1
2.75%
Min
-2.31%

A Net Profit Margin of 11.36% places WM in the upper quartile for the Commercial Services & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.

ZTO

20.76%

Air Freight & Logistics Industry

Max
10.27%
Q3
6.18%
Median
3.96%
Q1
2.32%
Min
0.61%

ZTO’s Net Profit Margin of 20.76% is exceptionally high, placing it well beyond the typical range for the Air Freight & Logistics industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

WM vs. ZTO: A comparison of their Net Profit Margin (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Operating Profit Margin (TTM)

WM

17.52%

Commercial Services & Supplies Industry

Max
23.43%
Q3
12.19%
Median
8.10%
Q1
3.18%
Min
-6.03%

An Operating Profit Margin of 17.52% places WM in the upper quartile for the Commercial Services & Supplies industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ZTO

25.33%

Air Freight & Logistics Industry

Max
17.40%
Q3
8.87%
Median
5.89%
Q1
3.03%
Min
0.62%

ZTO’s Operating Profit Margin of 25.33% is exceptionally high, placing it well above the typical range for the Air Freight & Logistics industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

WM vs. ZTO: A comparison of their Operating Profit Margin (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Profitability at a Glance

SymbolWMZTO
Return on Equity (TTM)31.93%15.30%
Return on Assets (TTM)6.42%10.15%
Net Profit Margin (TTM)11.36%20.76%
Operating Profit Margin (TTM)17.52%25.33%
Gross Profit Margin (TTM)39.72%29.65%

Financial Strength

Current Ratio (MRQ)

WM

0.86

Commercial Services & Supplies Industry

Max
2.94
Q3
1.89
Median
1.38
Q1
0.87
Min
0.53

WM’s Current Ratio of 0.86 falls into the lower quartile for the Commercial Services & Supplies industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ZTO

1.05

Air Freight & Logistics Industry

Max
1.83
Q3
1.47
Median
1.29
Q1
1.05
Min
0.62

ZTO’s Current Ratio of 1.05 falls into the lower quartile for the Air Freight & Logistics industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

WM vs. ZTO: A comparison of their Current Ratio (MRQ) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Debt-to-Equity Ratio (MRQ)

WM

2.61

Commercial Services & Supplies Industry

Max
1.67
Q3
1.08
Median
0.73
Q1
0.36
Min
0.00

With a Debt-to-Equity Ratio of 2.61, WM operates with exceptionally high leverage compared to the Commercial Services & Supplies industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ZTO

0.27

Air Freight & Logistics Industry

Max
1.57
Q3
1.06
Median
0.72
Q1
0.30
Min
0.00

Falling into the lower quartile for the Air Freight & Logistics industry, ZTO’s Debt-to-Equity Ratio of 0.27 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

WM vs. ZTO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Interest Coverage Ratio (TTM)

WM

6.82

Commercial Services & Supplies Industry

Max
24.70
Q3
12.37
Median
7.16
Q1
2.69
Min
-10.97

WM’s Interest Coverage Ratio of 6.82 is positioned comfortably within the norm for the Commercial Services & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.

ZTO

--

Air Freight & Logistics Industry

Max
49.07
Q3
23.59
Median
8.56
Q1
5.97
Min
-0.60

Interest Coverage Ratio data for ZTO is currently unavailable.

WM vs. ZTO: A comparison of their Interest Coverage Ratio (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Financial Strength at a Glance

SymbolWMZTO
Current Ratio (MRQ)0.861.05
Quick Ratio (MRQ)0.860.87
Debt-to-Equity Ratio (MRQ)2.610.27
Interest Coverage Ratio (TTM)6.82--

Growth

Revenue Growth

WM vs. ZTO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

WM vs. ZTO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

WM

1.37%

Commercial Services & Supplies Industry

Max
3.44%
Q3
2.30%
Median
1.37%
Q1
0.63%
Min
0.00%

WM’s Dividend Yield of 1.37% is consistent with its peers in the Commercial Services & Supplies industry, providing a dividend return that is standard for its sector.

ZTO

0.00%

Air Freight & Logistics Industry

Max
6.43%
Q3
3.10%
Median
2.40%
Q1
0.46%
Min
0.00%

ZTO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

WM vs. ZTO: A comparison of their Dividend Yield (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Dividend Payout Ratio (TTM)

WM

46.71%

Commercial Services & Supplies Industry

Max
137.88%
Q3
72.93%
Median
40.45%
Q1
23.31%
Min
0.00%

WM’s Dividend Payout Ratio of 46.71% is within the typical range for the Commercial Services & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ZTO

0.00%

Air Freight & Logistics Industry

Max
160.95%
Q3
92.80%
Median
54.10%
Q1
0.19%
Min
0.00%

ZTO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

WM vs. ZTO: A comparison of their Dividend Payout Ratio (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Dividend at a Glance

SymbolWMZTO
Dividend Yield (TTM)1.37%0.00%
Dividend Payout Ratio (TTM)46.71%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

WM

34.02

Commercial Services & Supplies Industry

Max
57.20
Q3
37.10
Median
22.38
Q1
16.35
Min
0.00

WM’s P/E Ratio of 34.02 is within the middle range for the Commercial Services & Supplies industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ZTO

12.01

Air Freight & Logistics Industry

Max
34.55
Q3
23.34
Median
16.33
Q1
13.38
Min
6.36

In the lower quartile for the Air Freight & Logistics industry, ZTO’s P/E Ratio of 12.01 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

WM vs. ZTO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Price-to-Sales Ratio (TTM)

WM

3.86

Commercial Services & Supplies Industry

Max
4.64
Q3
2.28
Median
0.97
Q1
0.64
Min
0.00

WM’s P/S Ratio of 3.86 is in the upper echelon for the Commercial Services & Supplies industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ZTO

2.49

Air Freight & Logistics Industry

Max
2.13
Q3
1.16
Median
0.59
Q1
0.36
Min
0.18

With a P/S Ratio of 2.49, ZTO trades at a valuation that eclipses even the highest in the Air Freight & Logistics industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

WM vs. ZTO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Price-to-Book Ratio (MRQ)

WM

10.01

Commercial Services & Supplies Industry

Max
6.71
Q3
4.38
Median
2.39
Q1
1.57
Min
0.43

At 10.01, WM’s P/B Ratio is at an extreme premium to the Commercial Services & Supplies industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ZTO

1.82

Air Freight & Logistics Industry

Max
3.13
Q3
2.81
Median
1.82
Q1
1.20
Min
0.74

ZTO’s P/B Ratio of 1.82 is within the conventional range for the Air Freight & Logistics industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

WM vs. ZTO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Commercial Services & Supplies and Air Freight & Logistics industry benchmarks.

Valuation at a Glance

SymbolWMZTO
Price-to-Earnings Ratio (TTM)34.0212.01
Price-to-Sales Ratio (TTM)3.862.49
Price-to-Book Ratio (MRQ)10.011.82
Price-to-Free Cash Flow Ratio (TTM)42.799.58