Q: I will be making a case to our investment club to replace CU with ENB..The portfolio mandate is conservative growth with above average dividends. How would you compare these two companies, what metrics would you use, how would you frame the presentation ?
Thanks. Derek.
Thanks. Derek.
5i Research Answer:
We would look at P/E, price/cash flow, dividend, size, dividend growth, balance sheet risk, historical performance, acquisition opportunties and management. Framing the comparison should be fairly straightforward with these metrics. ENB is significantly larger and has a higher yield. But some investors worry about its debt. But size can be an advantage in a downturn and ENB also has a better five year dividend growth rate. ACO.X owns 38% of CU, and at times this could pressure the stock (if ACO decides to exit).