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Toronto-Dominion Bank (The) (TD)
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Bank of Nova Scotia (The) (BNS)
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BRP Inc. Subordinate Voting Shares (DOO)
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Magna International Inc. (MG)
Pretty sure I know your answer based on past questions, but I have so many questions to use from being a long time satified member.
Would you swap MG for DOO? Please provide some comparison metrics for the next 3 to 5 years to justify switch.
Again, using same question above, compare a BNS to TD switch.
Thanks again for your valuable insights over the past several years!
For a growth-oriented investor with a long timeframe, we would be comfortable swapping MG for DOO at this time. DOO is roughly half the size of MG, but its five-year revenue and EPS growth has been much stronger than Magna's, with a five-year sales and EPS CAGR of 18% and 29%, respectively, against MG's of 1% and (23%), respectively. MG has a strong balance sheet than DOO, but we like the net profit margin of DOO better, and its valuation is also relatively more attractive.
While BNS has a more geographically diverse revenue base, TD has performed better over a five and 10 year timeframe. TD has exhibited stronger sales and EPS growth than BNS, its equity balance has expanded at a faster pace, and its ROE is better than BNS, at 14.3% vs. BNS at 12.3%. BNS offers a slightly better yield at 6.0% vs. TD at 4.5%, however, TD is a larger name and has demonstrated strong growth in the North American markets.