Q: I already WSP at much lower valuation but if a person wanted a second choice in the space for diversity which of STN ATRL would you choose and why? Or is there another player you would prefer?
5i Research Answer:
ATRL has outperformed sharply this year, but we STN as the better stock right now. The company is simply 'more reliable'. ATRL of course has had numerous issues, bribery claims and back-dealings with government entities. We think it has recovered from most of these, but STN is expected to show faster growth over the next two years. They have similar valuation multiples, so we would side with STN as it may play 'catch up' to its peer.