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  5. CPX: Looking at overall return, how would you rate these 2 stocks? [Capital Power Corporation]
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Q: Looking at overall return, how would you rate these 2 stocks?

Thanks
Asked by Mark on August 01, 2023
5i Research Answer:

T is much larger than CPX, at a $25.8B market cap vs. CPX at $3.7B. CPX is expected to grow sales and earnings nicely in the coming year, whereas T is anticipating some margin compression. Historically, CPX has performed better than T over the past five and 10 year periods. CPX has demonstrated stronger sales and earnings growth rates, and trades at a cheaper valuation. Even though CPX operates in a traditionally slower sector, utilities, we would give CPX the slight edge here today given its strong operating performance history and expectations for growth.