-
TFI International Inc. (TFII $121.28)
-
Andlauer Healthcare Group Inc. Subordinate Voting Shares (AND $53.16)
Q: I have small positions in both TFII and AND (about 2% each) and looking to add to them (long-term positions so not worried about near-term uncertainty, I'm sure they'll both be fine over the long-term).
I'm thinking TFII is the safer bet (cheaper, larger, much longer-term track record) but AND's smaller size and less-levered balance sheet might allow it to make more meaningful acquisitions for higher growth.
What are your thoughts, which would you favour more for a young long-term investor?
I'm thinking TFII is the safer bet (cheaper, larger, much longer-term track record) but AND's smaller size and less-levered balance sheet might allow it to make more meaningful acquisitions for higher growth.
What are your thoughts, which would you favour more for a young long-term investor?
5i Research Answer:
We would agree; TFII is safer, AND has more torque. With its decline, TFII is also much much cheaper now and has a higher yield. AND, due to its business mix, may be less impacted by a possible recession, but at the same time its small size could result in extra volatility if weak markets continue. For now, we would side with TFII unless one is committed to a five-year hold with AND.