Q: I own both Propel and Goeasy. Goeasy I've owned for quite some time, Propel I have been adding to slowly for the last 4 months. I would like to continue to own both. Would you balance the two out by selling some Goeasy to equal out the value of the two? If not, what sort of ratio would you suggest.
5i Research Answer:
While we cannot personalize responses, both are similar in size ($2.3B market cap for GSY and $0.8B market cap for PRL). PRL is expected to see higher growth next year, and historically, it has grown at a faster rate than GSY. PRL trades at a premium valuation relative to GSY, but not at levels that we would be concerned about. Given PRL's higher levels of US business exposure, we would be comfortable with balancing weights between GSY and PRL.