Q: Propel and Goeasy seem to be similar with good growth prospects .Is there advantages to owning both instead of one ,if not which one would you pick ?
5i Research Answer:
PRL is still in the early stages of its growth, and its recent earnings results were quite strong. PRL is quite similar to GSY and the two operate in the same space, but we still prefer GSY today. While PRL is expected to grow faster than GSY, we like GSY's size relative to PRL and its longer history. There can be some diversifying effects by holding both names, but we feel that currently GSY is the industry leader and we would prefer GSY here.