Q: Please compare these 2 and which might you prefer for a 3 to 5 year hold? Thanx.
5i Research Answer:
Both companies are top names in the long-term-care/assisted living spaces. SIA pays a 6.60% yield while CSH.UN pays 4.9%. SIA recently announced a 5% buyback. Both companies have high debt levels and we think that a declining rate environment will bode positively for both. CSH.UN has displayed higher margins over the last few years and recently made a significant acqusition that should contribute poisitively to growth. CSH.UN has had historically higher cash flows which we like. We would go with CSH.UN due to the positive impact the recent acqusition could have and having stronger fundementals on some levels. The two are very close though, and tailwinds related to rate cuts and the aging population will have a similar impact on both.