RE:RE:RE:Is LSI expensive in comparison to its older cousin BadgerI looked at different data sources and they do not always match. However, the following hopefully represents some form of direction. Additionally, since LSI does not have many years of data, it is sometimes a bit harder to compare..
Return on Equity
LSI - I found 3 years of data, 2 of them were above 20% and the most recent year was about 14%.
BAD - In the last 9 years of data, the lowest value was 21%.
% Debt to Capital
LSI - About 60%
BAD - About 30%
Financial Crisis
LSI was not (really) around in 2008 when we had the financial crisis in any major way.
BAD was around and mgmt demonstrated that they could live through this crisis very successfully. We do not know how LSI would perform if a similar event would strike in the future.
Historical Earnings
LSI's earnings have been a little bit sporadic
BAD's earnings have been increasing over time. A much cleaner growth pattern.
Dividend
BAD pays a dividend, LSI does not.
Risk vs Potential
LSI is a much smaller, newer company and is therefore more risky, however should offer greater upside if all goes well.
Share Count
LSI`s shares being issued is growing at a much faster rate than BAD, hence greater dilution for us shareholders.
General Information about the companies
I personally find it difficult to get information about LSI, being a smaller company.
BAD is larger and information is more abundant, making it easier to follow...
Other
Ratios such as Operating Margin and Net Profit Margin are more attractive (& more consistent) with BAD.
I didn't comment on P/E.... as these were already discussed..
My 2 cents
I personally do not own any shares in BAD, however am long with LSI. I sometimes wonder why? However, the industry is strong with great growth ahead and a little company (which starts from a smaller base) should be able to grow faster than its bigger brother, however it carries greater risk.
Any comments...?