Investment Q&A

TSL does not have any analysts' coverage yet so it does not have any forward metrics unfortunately. On a price-to-book basis TSL trades at 0.7x whereas DRX trades at 1.6x. Looking at trailing price-to-earnings, TSL trades at 10.8x and DRX at 8.4x. For trailing price-to-sales, TSL trades at 0.4x versus DRX at 0.8x.  We typically do not like to use trailing measures for earnings and sales but it does provide some more context when comparing the two. On a price-to-book basis, TSL is undervalued relative to DRX so you are not totally off, however trailing earnings multiples do conflict with this sentiment. We would say TSL is slightly undervalued relative to DRX. TSL has run into trouble in prior business cycles, however, and has stopped its dividend in the past. Also, its busines is fairly vulnerable to China dumping product and impacting prices.