Q: Please compare these two companies (ADEN and RCH) and which would be the preferred to invest in now, and indicating good entry prices.
Grazzia
Grazzia
5i Research Answer:
Both companies operate as distributors of building products that serve the construction and renovation industry. The industry is currently facing some headwinds due to a weak consumer spending environment and the uncertainty around tariffs. Despite the weak share price, we think it may take some time for the industry to recover its growth trajectory, and we feel there are better opportunities in the market.
That being if we HAVE TO pick between them, we would stick with RCH as we think the company possesses a superior track record of growing through acquisitions over the years.