Q: 5-10yr hold to maximise total return and safety of principal. Best valuation?
Thank you
Thank you
5i Research Answer:
We think both companies are solid options for a medium/long-term hold and are valued almost the exact same (STN at 26.6x and WSP at 26.9x). STN's short term growth outlook is better than WSP's in both revenue and EPS. Yield is quite similar as well, with WSP paying 0.76% and STN paying 0.71%. WSP is the larger company here so it may be the 'safer' pick of the two with market cap nearly double STN's. We would go with STN for growth and WSP for more safety and a bit better yield.