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  5. CNR: Hi Peter, I would like to get your thoughts on CNR and ENGH. [Canadian National Railway Company]
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Q: Hi Peter,

I would like to get your thoughts on CNR and ENGH. I am long CNR and would like to reduce it and add to my position in ENGH. My views are that I get more growth from ENGH and 4.5% dividend vs. CNR call it a 2.5% dividend. I know they are different businesses but comparing the two companies what provides more growth and income opportunity.

Thanks
Asked by Frank on March 17, 2025
5i Research Answer:

It is a tough call, as ENGH has not grown much in the past while, and its future growth will be highly dependent on acquisitions. CNR has a more consistent growth record, but may also face economic challenges in the next year. CNR is much larger, whereas ENGH is a bit cheaper and has outperformed recently. With $260M cash, ENGH has some cushion. If an investor is truly comfortable with small cap risk, we would side with ENGH today, but think CNR is a safer, better company overall.