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  5. ACO.X: Hello Peter and team, If given a choice, would you choose Hydro one over Atco? [ATCO Ltd. Class I Non-voting Shares]
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Q: Hello Peter and team,
If given a choice, would you choose Hydro one over Atco? Any idea why Atco has not done well over the last 5 years and if one is to invest , is this a good time? Thanks very much.

Asked by umedali on March 14, 2022
5i Research Answer:

We would side with Hydro One. It is more expensive than ACO but being cheap has not really helped the shares relative to Hydro One in the current environment either. The company has a near monopoly in its business and should be able to pass higher costs on to a large degree. Atco has some leverage on the balance sheet but otherwise has just had a mixed growth profile over the years that has likely made investors less interested in the name.