Q: Which stock do you better going forward for industrial exposure between VRT and ATS. I own WSP, TRI, and TFII already in this sector. Thinking of adding one of the two to either my TFSA or non registered account. Thanks.
5i Research Answer:
We like both. VRT is 3X as large as ATS and more expensive on most metrics. Both are leveraged. It's a tough call. VRT is specifically tied to the AI sector through data centres, and its performance may depend on that sector's continued growth and investor appetite. Meanwhile, ATS is diversifying its business and is also well positioned in automation, and is growing its backlog. Despite its larger size, we would see VRT as 'riskier' but also likely to be the winner here, if growth is the main objective.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VRT.