Head to Head Contrast: Construction Partners (NASDAQ:ROAD) and WSP Global (OTCMKTS:WSPOF)

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

Analyst Recommendations

This is a breakdown of current ratings for WSP Global and Construction Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WSP Global	0	0	5	0	3.00
Construction Partners	0	4	3	1	2.62

Construction Partners has a consensus target price of $133.50, indicating a potential upside of 42.87%. Given Construction Partners’ higher probable upside, analysts plainly believe Construction Partners is more favorable than WSP Global.

Earnings and Valuation

This table compares WSP Global and Construction Partners”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	1.35	$690.15 million	$3.69	35.45
Construction Partners	$3.48 billion	1.52	$101.78 million	$2.55	36.64

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.

Profitability

This table compares WSP Global and Construction Partners’ 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%
Construction Partners	4.10%	16.06%	4.59%

Institutional and Insider Ownership

94.8% of Construction Partners shares are owned by institutional investors. 15.7% of Construction Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 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.