Contrasting WSP Global (OTCMKTS:WSPOF) and Construction Partners (NASDAQ:ROAD)

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

Valuation & Earnings

This table compares Construction Partners and WSP Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Construction Partners	$2.81 billion	1.92	$101.78 million	$2.55	37.28
WSP Global	$13.09 billion	1.34	$690.15 million	$3.69	35.15

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

Institutional & Insider Ownership

94.8% of Construction Partners shares are owned by institutional investors. 15.7% of Construction Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Construction Partners	4.10%	16.06%	4.59%
WSP Global	5.34%	12.52%	5.34%

Analyst Ratings

This is a summary of recent ratings and price targets for Construction Partners and WSP Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Construction Partners	0	3	4	1	2.75
WSP Global	0	0	5	0	3.00

Construction Partners presently has a consensus target price of $133.50, suggesting a potential upside of 40.42%. Given Construction Partners’ higher possible upside, research analysts plainly believe Construction Partners is more favorable than WSP Global.

About Construction Partners

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.

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.