Q: Which of ODFL or TFII would you invest in today for long-term hold?
5i Research Answer:
We like both names. ODFL is an organic growth story with a high rate of return on its internal reinvestment over the years, and valuation has always been trading at a premium for many years. TFII is an acquisitive growth story, and valuation is more reasonable. We expect both to do well from here and would be okay to hold both. However, if we HAVE TO pick one, we would side with TFII.