Analyzing WSP Global (OTCMKTS:WSPOF) & Energy Services of America (NASDAQ:ESOA)

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

Insider and Institutional Ownership

2.1% of Energy Services of America shares are held by institutional investors. Comparatively, 68.2% of WSP Global shares are held by institutional investors. 44.7% of Energy Services of America shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Energy Services of America and WSP Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energy Services of America	N/A	N/A	N/A
WSP Global	N/A	N/A	N/A

Dividends

Energy Services of America pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. WSP Global pays an annual dividend of $1.50 per share and has a dividend yield of 0.7%. Energy Services of America pays out 65.6% of its earnings in the form of a dividend. WSP Global pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Services of America is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Energy Services of America and WSP Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Services of America	0	0	1	0	3.00
WSP Global	0	0	1	0	3.00

Energy Services of America presently has a consensus target price of $21.00, indicating a potential upside of 90.91%. Given Energy Services of America’s higher probable upside, analysts clearly believe Energy Services of America is more favorable than WSP Global.

Earnings and Valuation

This table compares Energy Services of America and WSP Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Services of America	$367.91 million	N/A	N/A	$0.18	60.11
WSP Global	N/A	N/A	N/A	$1.48	136.54

Energy Services of America is trading at a lower price-to-earnings ratio than WSP Global, indicating that it is currently the more affordable of the two stocks.

Summary

Energy Services of America beats WSP Global on 5 of the 8 factors compared between the two stocks.

About Energy Services of America

Energy Services of America Corporation, together with its subsidiaries, provides contracting services for utilities and energy related companies in the United States. The company constructs, replaces, and repairs interstate and intrastate natural gas pipelines and storage facilities for utility companies and private natural gas companies; and provides services relating to pipeline, storage facilities, and plant works. It also offers electrical and mechanical installation, and repair services, including substation and switchyard, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary works for the gas, petroleum power, chemical, water and sewer, and automotive industries. In addition, the company provides corrosion protection services, horizontal drilling services, liquid pipeline and pump station construction, production facility construction, water and sewer pipeline installation, and various maintenance and repair services, as well as other services related to pipeline construction. Further, it serves customers primarily in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. Energy Services of America Corporation was incorporated in 2006 and is based in Huntington, West Virginia.

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.