Q: Is there more growth in PNG vs KXS. I own KXS at a profit, but am considering selling some or all of KXS to buy PNG. Your thoughts?
5i Research Answer:
PNG is more 'single contract dependent' than KXS is, as the latter has a more diversified revenue base. This is both good and bad. A very large contract for PNG can significantly move the needle. If we look only at consensus estimates, PNG does have a much higher growth rate than KXS over the next two years. They are of course very different. PNG is more expensive, and smaller. But if one is only growth focused we would be OK with a switch (not to imply KXS is a sell. It has drifted lower but nothing seems 'wrong').