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Celestica Inc. (CLS $481.35)
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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A $188.79)
Q: Recognizing size differences, which of these two companies are better value and which do you prefer for growth going forward. Thanks
5i Research Answer:
CLS is much larger at a $40B market cap vs. HPS.A at $2.4B. CLS trades at a higher valuation (44X forward earnings) compared with 27X for HPS.A, but CLS has shown stronger revenue growth rates and earnings growth. Given its strong foothold in the AI infrastructure buildout, we would give CLS the edge today.