Q: Which one do you prefer right now?
Thank you
Thank you
5i Research Answer:
We like both WELL and VHI and would be comfortable holding both names. Although both are classified as healthcare players with high recurring revenue, VHI is more of a serial acquirer of software assets with higher margins, while WELL targets solutions that help practitioners manage front and back offices. We are comfortable to own both, that being said, given where they are trading today, we think WELL may offer a better risk/reward profile from the current level due to its much lower valuation and larger size.