Q: Thoughts on switching out of Gear and into Headwater and how do their metrics compare? I also hold Tamarack.
5i Research Answer:
GXE is $261M, 7X earnings, with a 12% yield, and a solid balance sheet. However, very little growth is expected in the next two years. HWX is $1.3B, 7.6X earnings, dividend 6.8% and a very strong balance sheet ($175M net cash). It is expect to show 10% growth in 2023 and nearly 35% growth in 2024. HWX looks better today, assuming it can hit those expected growth rates.