Veolia Environnement SA (ADR) (VE), Clean Harbors Inc (CLH): Where To Invest as Earth Nears Water Stress

Page 2 of 2

An acquisition cost burden

Clean Harbors Inc (NYSE:CLH) likewise achieved higher 2013 first quarter revenues, up 51% year over year from $572.0 million to $862.2 million, reflecting the acquisition of used oil re-refiner and recycler Safety-Kleen. The cost of the acquisition coupled with higher depreciation and amortization expense resulted in a decline in operating income to $34.8 million in the 2013 first quarter, from $61.7 million a year earlier. $10.5 million net income, or $0.17 per diluted share, was posted in the most recent quarter compared with the $32.0 million, or $0.60 per diluted share, registered in the 2012 first quarter.

Why Veolia may be a better pick

Bullish sentiments have been expressed onClean Harbors Inc (NYSE:CLH) and US Ecology, as well as on Veolia. More or less, this is an affirmation on the potent growth opportunities on business platforms aligned with sustainable economic development.

As a final take though, Veolia Environnement SA (ADR) (NYSE:VE) looks as a leading choice among the three based on current valuations. Currently moving at a 52-week band of $9.37-14.06, Veolia has an estimated 12.35 P/E ratio, compared to US Ecology Inc. (NASDAQ:ECOL)’s 19.44 and Clean Harbors Inc (NYSE:CLH)’s 30.36. Veolia’s current dividend yield of 7.20% likewise appears superior. Additionally, the upside potential favors Veolia which is trading at 5.25% over its price last year whereas US Ecology is already 65% above its price level last year.

Arturo Cuevas has no position in any stocks mentioned. The Motley Fool recommends Veolia Environnement SA (ADR) (NYSE:VE). The Motley Fool owns shares of Clean Harbors and US Ecology. Arturo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Where To Invest as Earth Nears Water Stress originally appeared on Fool.com and is written by Arturo Cuevas.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2