Q: I want to chose one of these, which would you chose and why
Thank You
Peter
Thank You
Peter
5i Research Answer:
We like both of these companies and they both benefit from incorporating AI in product offerings (DCBO to a greater extent). We would lean to PRL here however it is small cap and about half the size of DCBO making it much more risky. Speaking to fundementals, PRL is more attractive with higher margins, pays a nice dividend yield, is significantly cheaper, and has grown revenues faster over the last few years. PRL's valuation is 8.1x forward earnings versus DCBO's 50.6x forward earnings. While both companies have significant growth potential, we think PRL is better for small cap investors while DCBO is the less risky, high upside play.