Contrasting Worley (OTCMKTS:WYGPY) & UL Solutions (NYSE:ULS)

UL Solutions (NYSE:ULS) and Worley (OTCMKTS:WYGPY) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for UL Solutions and Worley, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UL Solutions	0	4	3	2	2.78
Worley	0	0	1	0	3.00

UL Solutions presently has a consensus price target of $83.57, suggesting a potential upside of 17.63%. Given UL Solutions’ higher possible upside, analysts plainly believe UL Solutions is more favorable than Worley.

Dividends

UL Solutions pays an annual dividend of $0.52 per share and has a dividend yield of 0.7%. Worley pays an annual dividend of $0.26 per share and has a dividend yield of 2.9%. UL Solutions pays out 31.1% of its earnings in the form of a dividend.

Profitability

This table compares UL Solutions and Worley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UL Solutions	11.29%	34.49%	12.74%
Worley	N/A	N/A	N/A

Risk and Volatility

UL Solutions has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Worley has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

This table compares UL Solutions and Worley”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UL Solutions	$2.87 billion	4.97	$326.00 million	$1.67	42.54
Worley	$7.28 billion	0.61	$264.87 million	N/A	N/A

UL Solutions has higher earnings, but lower revenue than Worley.

Summary

UL Solutions beats Worley on 9 of the 13 factors compared between the two stocks.

About UL Solutions

UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.

About Worley

Worley Limited provides professional project and asset services to energy, chemicals, and resources sectors worldwide. The company offers digital, consulting, engineering and design, construction management, construction and fabrication, supply chain management, project management, and operation and maintenance services, as well as maintenance, modification, and operation services. It serves new energy, power, upstream and midstream, refining and chemicals, and infrastructure markets, as well as mining, minerals, and metals markets. The company was formerly known as WorleyParsons Limited and changed its name to Worley Limited in October 2019. The company was founded in 1893 and is based in Sydney, Australia.