Analyzing NWS (OTCMKTS:NWSZF) & WSP Global (OTCMKTS:WSPOF)

NWS (OTCMKTS:NWSZF) 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 institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Dividends

NWS pays an annual dividend of $0.62 per share and has a dividend yield of 56.4%. WSP Global pays an annual dividend of $1.06 per share and has a dividend yield of 0.9%. NWS pays out 53.0% of its earnings in the form of a dividend. WSP Global pays out 65.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NWS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares NWS and WSP Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NWS	N/A	N/A	N/A
WSP Global	5.46%	12.01%	5.25%

Insider & Institutional Ownership

8.4% of NWS shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for NWS and WSP Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NWS	0	0	0	0	0.00
WSP Global	0	0	4	0	3.00

Earnings & Valuation

This table compares NWS and WSP Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NWS	N/A	N/A	N/A	$1.17	0.94
WSP Global	$13.09 billion	1.18	$690.15 million	$1.61	71.10

WSP Global has higher revenue and earnings than NWS. NWS 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

WSP Global beats NWS on 8 of the 11 factors compared between the two stocks.

About NWS

NWS Holdings Limited, an investment holding company, operates in the toll roads, construction, insurance, logistics, and facilities management businesses in Hong Kong, Mainland China, and internationally. It engages in the development of, investment in, and/or operation of toll roads. The company also offers general contracting, construction management, and civil engineering and foundation works services for the residential, commercial, governmental, and institutional sectors. In addition, it provides diversified insurance and financial planning products and services, including life insurance, medical insurance, critical illness insurance, personal accident insurance, saving insurance plans, annuity, and investment-linked assurance schemes for individuals and institutions. Further, the company invests and manages various logistics projects; and develops rail container terminal. Additionally, it manages and operates venues for exhibitions, conventions, meetings, entertainment events, banquets and catering events, etc.; and Gleneagles hospital Hong Kong. Further, the company engages in the retail of duty free tobacco, liquor, perfume, cosmetics, package food, and general merchandise. In addition, the company offers commercial complex and hotel management services; property investment, agency, and management and consultancy services; general trading, bond issuing, distressed asset management, and carpark management services. The company was formerly known as Pacific Ports Co Limited and changed its name to NWS Holdings Limited in January 2003. NWS Holdings Limited is headquartered in Cheung Sha Wan, Hong Kong. As of November 23, 2023, NWS Holdings Limited operates as a subsidiary of Chow Tai Fook Enterprises Limited.

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.