Q: Can you tell about these companies and whether one is better than the other? Will they participate in the increasing demand for energy in North America?
5i Research Answer:
EFX is a decent mid cap, trading at an attractive valuation of 11X earnings with a 0.97% dividend. Shares have doubled in the past year. EPS is expected to rise nicely this year and slip a bit in 2026. It has some leverage but not a worrying amount. Its products are closely tied to energy markets and compressed gas. It should see some benefit from increased demand.
TVK we have a report on so would first reference that. It is larger and more expensive (35X) but has more consistent earnings growth and strong growth is expected. It is more leveraged, however, but we would prefer it for growth. About half its business is energy-related so it certainly should benefit if demand surges.