Q: Hello
Wondering which of these two will have the greatest growth over the next 3-5 years?
Balance sheets look good for both with increasing revenues. I wonder given the optical industry is highly competitive will it stagnate Kits future growth more so then the robotics and battery supply industry.
Will the reduction in China tariffs help in the battery supply opportunities?
Would they be better in a registered account over a non registered?
Thank you
Jeff
Wondering which of these two will have the greatest growth over the next 3-5 years?
Balance sheets look good for both with increasing revenues. I wonder given the optical industry is highly competitive will it stagnate Kits future growth more so then the robotics and battery supply industry.
Will the reduction in China tariffs help in the battery supply opportunities?
Would they be better in a registered account over a non registered?
Thank you
Jeff
5i Research Answer:
As small cap growth stocks, we would see a TFSA as the best account. KITS is a solid company, but we think PNG has the bigger moat and thus larger long term potential. Tariff reductions could help both companies. But the increase in defense spending is a big driver for PNG, and yes, KITS is in a much more competitive industry. That being said, KITS might see a takeover one day (management sold their prior company). But over a long time period we would side with PNG.