Analyzing WSP Global (OTCMKTS:WSPOF) and Sterling Infrastructure (NASDAQ:STRL)

Sterling Infrastructure (NASDAQ:STRL) and WSP Global (OTCMKTS:WSPOF) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares Sterling Infrastructure and WSP Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sterling Infrastructure	$2.49 billion	6.30	$290.15 million	$13.87	36.99
WSP Global	$13.09 billion	1.18	$690.15 million	$3.69	31.05

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Sterling Infrastructure and WSP Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sterling Infrastructure	0	2	6	0	2.75
WSP Global	0	0	5	0	3.00

Sterling Infrastructure currently has a consensus target price of $733.00, suggesting a potential upside of 42.88%. Given Sterling Infrastructure’s higher possible upside, equities analysts clearly believe Sterling Infrastructure is more favorable than WSP Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sterling Infrastructure	12.55%	40.12%	17.15%
WSP Global	5.34%	12.52%	5.34%

Institutional & Insider Ownership

80.9% of Sterling Infrastructure shares are owned by institutional investors. 1.6% of Sterling Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Sterling Infrastructure beats WSP Global on 10 of the 13 factors compared between the two stocks.

About Sterling Infrastructure

Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions primarily in the United States. It operates through three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions. The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors. The Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation in various states, regional transit authorities, airport authorities, port authorities, water authorities, and railroads. The Building Solutions segment provides residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work for developers and general contractors, as well as provides plumbing services for residential builds. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022. Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.

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.