Q: Which do you think might have a better return over next 2 to 3 years and why. Suggested entry point? Thanx.
5i Research Answer:
We like L, but it is a slow and steady business with limited pricing power. X, meanwhile, is a capital-light business that has a near-monopoly in its industry. With the markets very strong and rates heading lower, we thnk X has more growth potential. It is more expensive so there is a trade-off, but it would be our pick today of these two.