Q: Which between WELL and PNG do you feel will appreciate in value more over the next year and why? Pros and cons for each?
5i Research Answer:
PNG is smaller, but has substantially better momentum, and is more expensive (by far). While its balance sheet is fine, cash flow remains quite low overall as it positions itself for growth. WELL meanwhile is cheap but unloved. Its fortunes may depend on acquisitions and corporate strategy moves. Investors have been disappointed, so far, but its management is solid. PNG has a better expected 2025 growth rate, based on consensus. With PNG up 164% this year, momentum could continue. On the assumption that PNG can win more contracts, in the short term we would side with it for potential appreciation. Note since they are so different this is a bit of a difficult exercise.