Q: I own both of these stocks and have to sell some. Could you please advise which has more upside in the next six months. Cheers
5i Research Answer:
While it is tough to predict stock movements on short timeframes such as six months, both names are similar in size, but ATH has shown a better historical performance, and trades at a slightly cheaper valuation. TVE pays a 4% dividend, while ATH does not issue a dividend, but rather uses most of its free cash flows to repurchase shares. Given the difference in cash flow use, and a fairly short timeframe, we would side with ATH as being the slightly stronger name for a short-term basis.