Analyzing WillScot (NASDAQ:WSC) and Stantec (NYSE:STN)

WillScot (NASDAQ:WSC) and Stantec (NYSE:STN) are both mid-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Risk & Volatility

WillScot has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Stantec has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Institutional and Insider Ownership

95.8% of WillScot shares are held by institutional investors. Comparatively, 63.9% of Stantec shares are held by institutional investors. 3.4% of WillScot shares are held by company insiders. Comparatively, 0.5% of Stantec shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares WillScot and Stantec”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WillScot	$2.28 billion	1.48	-$52.99 million	($0.38)	-49.17
Stantec	$5.83 billion	1.36	$343.11 million	$3.21	21.92

Stantec has higher revenue and earnings than WillScot. WillScot is trading at a lower price-to-earnings ratio than Stantec, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for WillScot and Stantec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WillScot	1	7	3	0	2.18
Stantec	0	2	5	0	2.71

WillScot presently has a consensus target price of $26.50, suggesting a potential upside of 41.82%. Stantec has a consensus target price of $175.00, suggesting a potential upside of 148.69%. Given Stantec’s stronger consensus rating and higher possible upside, analysts clearly believe Stantec is more favorable than WillScot.

Profitability

This table compares WillScot and Stantec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WillScot	-3.00%	21.62%	3.39%
Stantec	5.91%	19.70%	8.07%

Dividends

WillScot pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Stantec pays an annual dividend of $0.69 per share and has a dividend yield of 1.0%. WillScot pays out -73.7% of its earnings in the form of a dividend. Stantec pays out 21.5% 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. Stantec has increased its dividend for 13 consecutive years. WillScot is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Stantec beats WillScot on 10 of the 17 factors compared between the two stocks.

About WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.

About Stantec

Stantec Inc. provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. The company also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, it offers planning and design services to clients in residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration sectors; architectural and interior design, and planning services in the science and technology, commercial workplace, higher education, residential, and hospitality markets. Further, the company provides transportation advisory, transport engineering, and technical design; project delivery consultancy services for mining, resources, and industrial infrastructure projects; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; and environmental and cultural resource compliance services. Additionally, it offers consulting services in sustainable building design, energy infrastructure upgrades, sustainable district heating network, and e-mobility; and planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.