Q: I'm looking at adding a dividend-paying company in the financial sector, which is not one of the traditional banks. Which of these two businesses might you suggest has a better chance to outperform the market, over the longterm?
5i Research Answer:
It is a tough call, as IFC is 16X as large as EQB. Smaller companies have greater share-price-earnings leverage at times, and can see their valuation move as they transition to larger market cap. But EQB has struggled a bit this year. We like both, but for conservatism we would side with the larger IFC in this contest today.