Q: I have been very happy with my WSP investment now at 100% gain. Out of the 2 companies which one do expect to grow faster? And if I were to split my investment how much would you allocate for each?
5i Research Answer:
Based on consensus estimates, sales are expected to grow by around 6% over the next few years, while STN is also expected to grow in the range of 6%-8% in the same period.
In the last five years, WSP has managed to grow its topline by around 12% on average while that number was around 10% for STN.
Overall, we would consider the two names very similar, but we prefer WSP due to its better growth track record through acquisitions. We would allocate more to WSP relative to STN.