Q: Are these two companies too similar to own both? At what price does each become compelling for a trade? Which would you rather own?
5i Research Answer:
Both are energy explorers/producers, and of similar size. WCP is cheaper on valuation and has a higher dividend yield. We think both are fine, but would prefer WCP for potentially faster growth. Both could be owned depending on one's overall sector weighting goals. We think WCP is very interesting in the mid $9-level; VSN also in the same range.