Q: Hello 5i Research
If you had to pick just one of these stocks which one would you choose and why?
I know that it is like comparing apples and oranges.
Thanks
If you had to pick just one of these stocks which one would you choose and why?
I know that it is like comparing apples and oranges.
Thanks
5i Research Answer:
JBL is significantly smaller, and significantly cheaper. It has debt, but hardly a worrying amount (net less than 1X cash flow). SHOP has $4B cash. In the next three years, SHOP is expected to see a much stronger earnings growth profile, and we like its new focus on profitability. The differences are reflected in valuations, but we would still side with growth here, and SHOP.