Q: Good morning,
Both BYD and TFII seem to be strong compounding industrial 'transportation' stocks that have stalled for awhile. I seem to recall that TFII is expecting a weak Q3/Q4 before beginning to ramp up again. I'd like to get into TFII but am not sure if it's worth waiting for a further drop in 2024.
Could you please give a quick comparison of the two stocks, including which one you think will grow more quickly in the near/long-term, including suggested entry prices?
Thank you!
Both BYD and TFII seem to be strong compounding industrial 'transportation' stocks that have stalled for awhile. I seem to recall that TFII is expecting a weak Q3/Q4 before beginning to ramp up again. I'd like to get into TFII but am not sure if it's worth waiting for a further drop in 2024.
Could you please give a quick comparison of the two stocks, including which one you think will grow more quickly in the near/long-term, including suggested entry prices?
Thank you!
5i Research Answer:
Due to their business mix, we would not really consider them that comparable. TFII is $17B market cap, trades at 21X earnings, with a 1.09% yield and expected growth in the 25% range for 2025. The stock is up 11.4% this year. BYD is $4.8B, 68X earnings, 0.27% yield, with EPS expected to double in 2025. BYD is down 20% this year. BYD missed its last quarter, and estimates have been coming down. It has struggled with staff issues and over capacity at times. TFII has benefited from some competitor bankruptcies and good acquisitions over the years. We think TFII looks better overall for near and mid term peformance. We would see decent entry prices at $195-ish for TFII and $215 for BYD.