Q: How would you compare BDT and ARE going forward
5i Research Answer:
BDT trades at 10X earnings with a 3% yield and is expected to grow the top-line in the 10% to 14% range in the next two years. ARE trades at 19X earnings with a 2.8% yield and is expected to grow 5% to 8% in the next two years. Margins are a bit stronger at BDT as are return on equity metrics. We think both companies look fine but might lean a bit more toward BDT.