Q: Hello Team,
Which of these do see providing the greater total return over the next two to three years and why?
Thank You,
Barry
Which of these do see providing the greater total return over the next two to three years and why?
Thank You,
Barry
5i Research Answer:
They are quite different, with FTS a pure electrical utility and TOU an oil and gas (mostly gas) exploration and producing company. FTS's business is partly regulated and growth comes from population and energy usage. TOU's fortunes depends on drilling success and commodity prices. TOU is cheaper on valuation due to its cyclicality, but its has more potential overall, with growing production combining (at times) with high commodity prices.