Q: I have both NTR and WFG in my TFSA. I would like to raise some cash, and am considering selling either or both of these. Which would you sell? Portfolio balancing is not a consideration.
5i Research Answer:
NTR is much larger than WFG, but both have had similar sales growth rates over the past five years. NTR has a better EBITDA CAGR, a better margin profile and a slightly better valuation. We like NTR and hold it in the Balanced Equity model portfolio, and feel that it has the potential to see its price supported around the $65 to $70 range. We believe its business prospects should begin improving this year or next. For a larger name with slightly better fundamentals, we would prefer to keep NTR over WFG today.