Stantec is the better choice for investors

Article Excerpt

The COVID-19 pandemic has slowed the pace of new construction projects. But, the large backlog of orders for both of these leading engineering firms will help them rebound with the global economy. Still, for your new buying, we prefer Stantec given SNC’s new restructuring plan will weigh on its short-term earnings. STANTEC INC. $44 is a buy. The stock (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 111.5 million; Market cap: $4.9 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.4%; TSINetwork Rating: Extra Risk; www.stantec.com) offers you exposure to this leading seller of consulting, project-delivery, design and technology services. The company’s clients operate in a variety of industries, including oil and gas, transportation and construction. Stantec continues to grow through acquisitions. By sharing administrative expenses, financing and employee benefits among its businesses, it cuts costs. It also cuts the risk of expanding this way by focusing on smaller firms that can be easily integrated. Despite those new businesses, many of the company’s clients are…