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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A $200.63)
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EnerSys (ENS $122.08)
Q: I am debating between adding ENS and HPS.A to my TFSA. They both seem to occupy a different niche in the same industry. Which do you think has a better risk/reward profile?
5i Research Answer:
We have some comments on HPS.A in our 'best stock ideas' section (left hand side of the main Members' page). On the other hand, ENS is a larger and much cheaper stock on valuation, with a slightly higher dividend. ENS's balance sheet adds a bit of risk. HPS.A is in better financial shape and its recent backlog news was most impressive. But, as holders know, it has been very volatile. We would side with HPS.A in a close call.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ENS.