Head-To-Head Contrast: Stantec (NYSE:STN) versus WSP Global (OTCMKTS:WSPOF)

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

Dividends

WSP Global pays an annual dividend of $1.05 per share and has a dividend yield of 0.8%. Stantec pays an annual dividend of $0.69 per share and has a dividend yield of 0.9%. WSP Global pays out 65.2% of its earnings in the form of a dividend. Stantec pays out 22.1% 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. Stantec has raised its dividend for 13 consecutive years. Stantec is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WSP Global	5.46%	12.01%	5.25%
Stantec	5.92%	19.37%	8.03%

Valuation & Earnings

This table compares WSP Global and Stantec”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WSP Global	$13.09 billion	1.41	$690.15 million	$1.61	85.19
Stantec	$8.29 billion	0.99	$343.11 million	$3.12	23.41

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

Insider & Institutional Ownership

63.9% of Stantec shares are held by institutional investors. 0.5% of Stantec shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for WSP Global and Stantec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WSP Global	0	0	5	0	3.00
Stantec	0	2	5	0	2.71

Stantec has a consensus target price of $175.00, suggesting a potential upside of 139.58%. Given Stantec’s higher possible upside, analysts clearly believe Stantec is more favorable than WSP Global.

Summary

Stantec beats WSP Global on 10 of the 15 factors compared between the two stocks.

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.

About Stantec

Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. The company also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, it offers planning and design services to clients in residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration sectors; architectural and interior design, and planning services in the science and technology, commercial workplace, higher education, residential, and hospitality markets. Further, the company provides transportation advisory, transport engineering, and technical design; project delivery consultancy services for mining, resources, and industrial infrastructure projects; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; and environmental and cultural resource compliance services. Additionally, it offers consulting services in sustainable building design, energy infrastructure upgrades, sustainable district heating network, and e-mobility; and planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.