Thanks Dave
CLS has the advantage of being smaller (AVGO is 32X as large). CLS though is more expensive. It has also outperformed. AVGO has much more debt, but not really a concerning amount. This is a tough call. IF the AI party continues, we think CLS will win this contest. There are few Canadian choices in the sector, and it has strong growth, very strong momentum and is tied closely to the biggest (high growth) companies in the sector. But if the tech sector 'cracks', AVGO will likely hold up better, as it is so much larger and it can use its $26B annual free cash flow for buybacks or acquisitions in a weaker environment. We would side with CLS for 18 months.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AVGO.