Q: Have a small position in VHI, nothing in PNG and MDA. If you were to rank these three based on risk/reward and growth potential, how would you rank them for buying currently and a quick reason why? Thanks!
5i Research Answer:
MDA is likely the best balanced of the three. It has good growth expected on the top line and the industry in general is seeing growth currently, adding a tailwind. The valuation is reasonable and the company has a long track record of operations.
Next we would say Vitalhub for its good growth and margins alongside essentially no debt. The valuation is higher here but not unreasonable given the growth in our view.
PNG we think is interesting and has done well executing over the years and has the highest expected growth of the three names but is also likely the riskiest as revenues can be chunky and reliant on government contracts/spending.