I am up 45% on KEL, and up 33% on PHX. No tax issues as they are both in TFSA.
Which would you recommend to keep for a 3-5 year hold.
Thanks for your advice.
T.
KEL is much larger than PHX with a market cap of $1.38B versus $434.54M. Both companies have cheap valuations, but KEL is more expensive at 10.1x. forward-earnings, versus 5.6x forward-earnings for PHX. In Q3, PHX put together strong results while also hiking dividends and the markets reacted to this, with total returns up 23.2% year-to-date and 23.55% in the last month. KEL’s recent Q3 results were decent, mainly in line with analysts’ expectations and displayed total returns up 42.12% year-to-date, but down -3.91% in the last month. National Bank projected that KEL can support 2x production growth over the next three years. We like both names here, but lean to KEL as it is the less risky option due to size, whereas PHX has displayed solid growth and is cheaper. Service companies also tend to have more volatility in overall results.