Q: Could you compare these two for a 2 to 3 year hold and do you prefer one over the other? Thanx.
5i Research Answer:
The two companies are great long-term names to own in the Canadian tech space. While DSG operates as a serial acquirer of niche cloud-based logistics solutions, GIB.A is an IT service company with a history of consistent share repurchases. Each has a different story, and we like both names. DSG may have better upside potential if the company can continue to execute, but we feel GIB.A has better downside protection. We would give DSG the slight edge today due to its higher growth prospects.