We took a small initial position, with today's market pullback.
We also own WSP Global, for a while with a 3% position.
Does it make sense to own Both with an even split or just one holding is enough for this sector ? And if so, which will be your favorite and why ?
Thank You
ATRL has been showing strong momentum, it is growing nicely, with strong margin expansion, and analyst estiamtes have been trending higher. It generates good free cash flows, it has a nice share buyback in place, relatively low debt levels, and it trades at an OK valuation of 26.7X forward earnings. Its balance sheet is solid, and overall we like the name. We think its nuclear segment has the potential for long-term growth, and if executed properly, we think it can continue its positive momentum.
We would be comfortable with both WSP and ATRL, as there is some overlap, but also ATRL has a stronger focus on nuclear.
Over the long-term, we have preferred WSP, but ATRLs nuclear angle is becoming more interesting. Overall, we would still give WSP the slight edge, due to its long-term track record.