Q: Currently own SIS for a few years with small capital gains and collecting the monthly dividend. Looking for more capital gains and not in need of the monthly dividend payment. How’s HPS.A looking from a valuation and it is getting closer to 1B market cap. Looking to sell SIS and buy HPS.A for some more total returns. Thoughts?
5i Research Answer:
Even with its big gains, HPS.A is only 16X earnings and we would not consider that too expensive considering its growth rate and execution. And, more investors do look at stocks near its current market cap. It is also net debt-free. We still think SIS is a decent stock for healthcare/industrial exposure. But we would be OK with a switch if an investor only wants to own one of the two.