Q: Looking to open a position in one of the 2 listed companies or others if you have any to recommend. Long term investor with 0 exposure to the real estate sector in the portfolio yet.
Colliers growth projections and better valuation along with positive analysts ratings make it more attractive on the surface. However, I know that you have First Service in the growth portfolio, is there something that I'm missing as to why I should choose FSV before CIGI? Could you please give a breakdown between the two and the reasoning behind choosing one over the other? Also open to any other real estate sector stocks that would be a good add.
Thanks again!
Colliers growth projections and better valuation along with positive analysts ratings make it more attractive on the surface. However, I know that you have First Service in the growth portfolio, is there something that I'm missing as to why I should choose FSV before CIGI? Could you please give a breakdown between the two and the reasoning behind choosing one over the other? Also open to any other real estate sector stocks that would be a good add.
Thanks again!
5i Research Answer:
The businesses are both centered on real estate but are a bit different. We might view CIGI as more of a consulting and financial company in real estate, helping companies with engineering, investment management, leasing, valuation, and so on. FSV is more focused on property management and services. We tend to lean more toward FSV and view the business as a bit more sticky/stable, as it is hard to remove property management once already in place. Meanwhile, in a slower economy, less real estate deals get done, impacting CIGI. This difference is likely reflected in the valuation. It is a tough choice, we would still lean to FSV on the stability of the underlying business, but don't really have any qualms with CIGI.