Q: I understand that DSG and KXS operate in different spaces, but had thought that, as the market put April 9 behind it, they would recover along similar trajectories - but KXS has clearly taken the lead, today matching its December, 2024 high. Supposing that at least some of Trump's tariff plans come to fruition, is KXS the better investment? DGS's RoC (per your database) is far more attractive.
5i Research Answer:
We think this is more an issue of KXS playing 'catch up' than any big fundamental swing. Over five years, DSG has solidly outpeformed, up 152% vs up 33%. DSG has better metrics most years, is larger, and has done better overall. We do like KXS but would not say it is 'more attractive' today. Valuations are similar.