Both names are fairly similar in size (~$12B to $16B range), although, TFII has significantly outperformed MG on a five and 10-year timeframe. TFII is expecting muted growth in the next year, as freight rates and global economic growth are coming down. MG is certainly a cheaper name, trading at an 8.8X forward P/E, vs. TFII at 18.5X, although, as we know, cheap does not always imply better. MG pays a higher yield of 2.5%, vs. TFII at 0.9%. We would consider TFII's fundamentals to be stronger overall, with better margins, liquidity, and long-term growth rates. While we like both names and we continue to like MG for a mix of growth and yield, we would be comfortable with a switch to TFII, while acknowledging some of TFII's recent weakness in demand.
5i Research Answer: