Q: Hi, could you please compare these two companies. I own Bip.un , thinking of selling for cpx . I feel Bip.un is stagnant with little catalyst going forward. ( quite a bad chart). If I switch to cpx my rationale is to try and capitalize on the electrification that is going on?
Which of these two companies would you rather have for the next 4 years?
Thanks
Which of these two companies would you rather have for the next 4 years?
Thanks
5i Research Answer:
CPX is 11X earnings with a 6.4% dividend and relatively low growth expected. BIP is expensive on an earnings basis but because of its accounting it is much cheaper on a cash flow basis. Yield is 5.6%. Expected growth is significantly higher than CPX. They are quite different. CPX is largely a oure utility but BIP has significant infrastructure investments besides energy, such as transportation and communications. We would prefer BIP by a fairly wide margin on a potential total-return basis.