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  5. EQB: I was just looking at VBNK. [EQB Inc.]
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Investment Q&A

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Q: I was just looking at VBNK. The company's performance data looks extremely compelling, And also company insider buying is extensive ; more than what I ever recall seeing on any of the companies I follow. Could you please provide me with an analysis of the investment merits of the company. Also could you compare this company for potential purchase with EQB. What would be your preference, or would a position in both be advisable? Thanks.
Asked by John on March 08, 2024
5i Research Answer:

EPS of $0.48 beat estimates of $0.34 and revenues of $28.85M beat estimates of $21.99M. The first quarter was marked by continued robust growth in its Point-of-Sale Receivable Purchase Program portfolio, which expanded 28% year-over-year. It is shifting its strategy from higher yielding, higher risk-weighted loans to lower yielding, ower risk-weighted (CMHC) loans in its non-core CRE portfolio. It expects this to enhance ROE. Historical sales growth has been strong, and its net profit margins are expanding. It trades at a cheap valuation of 7.1X forward earnings, and its balance sheet is robust. The stock is declining slightly on the release, and we consider these decent results.

Overall, given EQB's healthier fundamentals and larger size, we would be much more comfortable with EQB than VBNK today.