Q: Hi, if initiating a position today, which of these two would you prefer, and why? What would be a good entry price for both? Thank you.
5i Research Answer:
We do like both, but would side with KXS. It is a bit cheaper on valuation, but it is the new momentum that makes it interesting. After a long time forming a base, it has finally broken out to close to its all-time highs and is outperforming DSG this year. It has lots of cash (too much) and very strong earnings growth is expected in the next 18 to 24 months, at least.