Over the past decade, Waste Management (WM) and Republic Services (RSG) have quietly compounded shareholder wealth because waste never stops being produced.

Shares of both unglamorous trash collectors outpaced the broader markets over the past decade, but the past year is a different story.

A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

Waste Management (NYSE: WM) and Republic Services (NYSE: RSG) are not glamorous. They pick up trash. But over the past decade, both companies quietly compounded shareholder wealth by leaning into pricing power, long-term municipal contracts, and a growing sustainability angle through renewable natural gas and recycling automation. Waste Management expanded its footprint dramatically with its early 2025 acquisition of Stericycle, adding a healthcare waste segment generating over $600 million per quarter. Republic Services took a more focused path, investing $1.1 billion in acquisitions during 2025 while expanding its Environmental Solutions segment. Both companies benefited from the simple fact that waste never stops being produced, recession or not.

The 10-year numbers demonstrate how differently the two companies are sized and structured.

Initial Investment: $1,000

Current Value: $4,686 (price return only)

Total Return: 368.6%

S&P 500 (same period): $3,167 (216.7%)

Initial Investment: $1,000

Current Value: $1,931

Total Return: 93.1%

S&P 500 (same period): $1,636 (63.6%)

Initial Investment: $1,000

Current Value: $1,003

Total Return: 0.3%

S&P 500 (same period): $1,168 (16.8%)

Initial Investment: $1,000

Current Value: $5,377

Total Return: 437.7%

S&P 500 (same period): $3,167 (216.7%)

Initial Investment: $1,000

Current Value: $2,352

Total Return: 135.2%

S&P 500 (same period): $1,636 (63.6%)

Initial Investment: $1,000

Current Value: $915

Total Return: −8.5%

S&P 500 (same period): $1,168 (16.8%)

Both stocks outperformed the S&P 500 over 10 and five years. The past year tells a different story. Waste Management essentially went nowhere at 0.31%, and Republic Services declined 8.5%, while the index returned 16.8%. Stericycle integration costs and recycled commodity price headwinds weighed on Waste Management, while Republic Services faced labor disruption costs of $56 million in 2025 and volume softness. The long-term compounding story remains intact, but the near term has been a period of moderation.

Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

Waste Management's Stericycle integration progress and management's 2026 free cash flow guidance of $3.625 to $3.925 billion, which represents significant growth, are key factors to watch. The planned dividend increase to $3.78 per share annually and $2 billion in share repurchases signal confidence. The forward P/E of 27x is reasonable for a defensive compounder with this track record.

On the other hand, risks remain if recycled commodity prices keep falling. Q4 2025 saw prices drop to $112 per ton for Republic Services from $153 per ton the prior year, and if integration costs run beyond the $137 million already absorbed in 2025. Republic is the cleaner story operationally, but at a forward P/E of 30x, it prices in more perfection.

Both are quality businesses. Waste Management's larger discount to its own recent highs is a factor investors may weigh when evaluating entry points.

 

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

And no, it’s got nothing to do with increasing your income, savings, clipping coupons, or even cutting back on your lifestyle. It’s much more straightforward (and powerful) than any of that. Frankly, it’s shocking more people don’t adopt the habit given how easy it is.