Q: Which holding is the better 3-5 year hold?
5i Research Answer:
VBNK has been showing nice momentum, and its recent earnings were strong, with sales up 31% and adjusted net income up 49%. But, EQB also has its own growth catalyst with the potential PC Financial acquisition, which could add distribution across 2,500 Loblaw stores and over 2 million credit cards. Due to its larger size, more diversified portfolio, and more consistent execution, we would give EQB the slight edge today, but for an investor seeking more growth regardless of volatility, we think VBNK has more upside potential.