Analyzing WSP Global (OTCMKTS:WSPOF) & Técnicas Reunidas (OTCMKTS:TNISF)

Técnicas Reunidas (OTCMKTS:TNISF) and WSP Global (OTCMKTS:WSPOF) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

30.7% of Técnicas Reunidas shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Técnicas Reunidas pays an annual dividend of $1.10 per share and has a dividend yield of 2.8%. WSP Global pays an annual dividend of $1.06 per share and has a dividend yield of 0.8%. Técnicas Reunidas pays out 47.1% of its earnings in the form of a dividend. WSP Global pays out 65.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Técnicas Reunidas is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Técnicas Reunidas and WSP Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Técnicas Reunidas	N/A	N/A	N/A	$2.34	17.10
WSP Global	$13.09 billion	1.33	$690.15 million	$1.61	80.10

WSP Global has higher revenue and earnings than Técnicas Reunidas. Técnicas Reunidas is trading at a lower price-to-earnings ratio than WSP Global, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Técnicas Reunidas and WSP Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Técnicas Reunidas	0	0	0	0	0.00
WSP Global	0	0	4	0	3.00

Profitability

This table compares Técnicas Reunidas and WSP Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Técnicas Reunidas	N/A	N/A	N/A
WSP Global	5.46%	12.01%	5.25%

Summary

WSP Global beats Técnicas Reunidas on 7 of the 11 factors compared between the two stocks.

About Técnicas Reunidas

Técnicas Reunidas, S.A., an engineering and construction company, designs and manages industrial plant projects worldwide. It operates through Oil and Gas, Power, and Other Industries segments. The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations, and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants. The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated plants with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste plants, and biomass technology plants, as well as plant operation and maintenance services; and supplies turnkey plants. The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks and sports centers. Técnicas Reunidas, S.A. is also involved in the real estate development, commercial development, and machinery wholesale business; and technical assistance, construction supervision, project management, technical management, and start-up and training activities. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.

About WSP Global

WSP Global Inc. operates as a professional services consulting firm in the United States, Canada, the United Kingdom, Sweden, Australia, and internationally. It advises, plans, designs, and manages projects for rail, transit, aviation, highways, bridges, tunnels, water, maritime, and urban infrastructure for public and private clients, construction contractors, and other partners. The company also provides engineering and consultancy services, such as decarbonization strategies, digital building design to building engineering design, and project management services. In addition, it works with and advises governments and private sector in earth sciences and environmental sustainability to conduct due diligence, permit approvals, regulatory compliance, waste/hazardous materials management, geotechnical and mining engineering, environmental/ social impact assessments, feasibility, and land remediation studies. Further, the company offers energy clients support, including large-scale power plants, renewables clean energy investments, smaller on-site power generation and efficiency programs, energy transmission, storage and distribution from pre-feasibility studies and community engagement through operation and decommissioning; and provides siting and licensing, procurement, construction management, engineering, process design, and productivity analysis to food and beverage, pharmaceutical and biotechnology, aerospace, automotive, technology, and chemicals industries, as well as operation, maintenance, and decommissioning services during the facility’s active life. Additionally, it offers strategic advisory services comprising planning and advisory, management, and technology and sustainability services. The company was formerly known as GENIVAR Inc. and changed its name to WSP Global Inc. in January 2014. WSP Global Inc. was founded in 1885 and is headquartered in Montreal, Canada.