For an RRSP hold long term 10+years which of these would you prefer? What are the differences between these FTT & TIH company? In your opinion which as the stronger management and most upside? Both have contracts with CAT would they have similar deals with CAT for sales?
Between the two we prefer TIH, we think TIH is a better-run company, and TIH’s operating results are less volatile than FFT over the years. TIH also has a track record of consistently raising dividends over the years. On the other hand, FTT is trading cheaper, and buying back shares aggressively, which is also a plus. Growth is more volatile and cyclical than TIH, which explains why FTT is trading at a discount compared to TIH over the years. Overall, both may do well going forward, we are more comfortable holding TIH as a higher quality name given the management track record, stronger balance sheet (TIH is in a net cash position), and more resilient business volumes. Both companies have a long-term strategic relationship with CAT. However, the details of how CAT's deals with each of them is not publicly announced. While FTT’s geographical segments include Canada, South America and the U.K., TIH’s main operating presence is in key provinces in Canada (Quebec, Ontario, Nova Scotia, etc.).