Q: Hi, you have indicated that both of these stocks serve similar areas and should do well as interest rates fall. What are the potential benefits of each of these for the next 3 years, which would you choose first, and why? Thank you for an interesting service.
5i Research Answer:
Both have a solid history of growth and dividend increases (GSY has a much longer public tenure). Both are expected to show solid earnings growth over the next 2 to 3 years, with PRL at an expected higher rate but also at a higher overall valuation. We would be comfortable buying either and would consider GSY a bit safer. It is larger, cheaper and has seen and survived recessions before.