WSP Global updated August 15, 2019

WSP Global is updated and rated Buy at $69.82. It has a great history of growth and trades at a reasonable although not particularly compelling valuation.

Compared to Stantec, WSP trades at a higher multiple to trailing earnings and book value. But it has been growing faster. And whereas Stantec is trying to emerge from several years of problems (notably cost overruns on its now disposed of construction services division that it had acquired in an acquisition), WSP has not reported any stumbles despite its tremendous growth by acquisition. Stantec also disappointed analysts in the latest quarter by reporting that it had been slower than planned in reducing admin costs and in admitting that it had not been closely managing such costs for some years.

Stantec, perhaps offers some added upside if it has now put its recent problems behind it and can return to the good graces of analysts.

For historic reasons, (i.e. I have been following Stantec for 20 years) I own Stantec but not WSP. If I were investing today, I would buy some of each rather than only Stantec.