Q: If just one to be owned,which would you prefer for a 3 year hold.Thanks.
5i Research Answer:
We think that both are good quality names that should experience some nice growth. PRL has more upside, is cheap at 11x forward earnings but is riskier due to size and how new it is. GSY has growth potential but less than PRL. GSY pays a higher yield (2.73% vs. 1.08%) and is cheaper at 9x forward earnings. We like PRL better for growth over a three year period, but it is riskier. We are happy buying GSY if an investor has a lower risk tolerance.