Q: I notice right now you like EQB oven GSY even though EQB has gone up a lot in the last little while. I could have bought EQB at, I believe at$48 (Nov. 2022) not that long ago - seems very expensive now while, based on my research GSY has a lot more room to run. I know the man that started EQB way back when - he still has his shares - lucky dog. In any case, your comments please as I was going to add at some point to my GSY - only have 500 shs.
5i Research Answer:
We would be happy with either. While EQB has surged, if we look at forward P/E ratios it is actually still cheaper than GSY (8X vs 10X). GSY does have a higher dividend yield, however. In a challenging environment, EQB is doing many things right. GSY is a bit smaller now, and still well off its 2021 high. In a falling rate environment (we are not there yet) it could outperform. We are going to call this one a tie. We like both, and we think both can be owned.