WSP Global (OTCMKTS:WSPOF – Get Free Report) and Quanta Services (NYSE:PWR – Get Free Report) are both large-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Dividends
WSP Global pays an annual dividend of $1.08 per share and has a dividend yield of 0.8%. Quanta Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.1%. WSP Global pays out 29.3% of its earnings in the form of a dividend. Quanta Services pays out 5.0% 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. Quanta Services has raised its dividend for 6 consecutive years.
Earnings & Valuation
This table compares WSP Global and Quanta Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WSP Global | $13.09 billion | 1.38 | $690.15 million | $3.69 | 36.30 |
| Quanta Services | $28.48 billion | 3.29 | $1.03 billion | $8.73 | 71.45 |
Quanta Services has higher revenue and earnings than WSP Global. WSP Global is trading at a lower price-to-earnings ratio than Quanta Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares WSP Global and Quanta Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WSP Global | 5.34% | 12.52% | 5.34% |
| Quanta Services | 4.03% | 20.55% | 7.34% |
Analyst Ratings
This is a summary of recent recommendations and price targets for WSP Global and Quanta Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WSP Global | 0 | 0 | 5 | 0 | 3.00 |
| Quanta Services | 3 | 8 | 20 | 1 | 2.59 |
Quanta Services has a consensus target price of $769.25, suggesting a potential upside of 23.32%. Given Quanta Services’ higher probable upside, analysts clearly believe Quanta Services is more favorable than WSP Global.
Insider and Institutional Ownership
90.5% of Quanta Services shares are held by institutional investors. 0.6% of Quanta Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Quanta Services beats WSP Global on 14 of the 17 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 Quanta Services
Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.
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