GREY:XEBEQ - Post by User
Post by
tamaracktopon May 01, 2022 12:23pm
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Post# 34645969
Some people
Some peopleNo doubt some people will quite rightly point out that in all respects Greenlane's numbers are better than Xebec's.
My response is that the advantages are both marginal and historical.
These are fluid situations, snd the numbers will change quite quickly.
Once profitability is reached, the ROE and ROA numbers will change drastically.
I expect the Summit contract will ensure Xebec's profitability this year, likely to a great extent.
Furthermore, Xebec's virtually non-existant premium to book value provides tremendous downside support, an important consideration in these markets.
The diversity of Xebec's lines of business and its solid base of recurring service revenues are an added advantage that Greenlane doesn't enjoy.
Xebec reached critical mass some time ago.
At a market cap of $138 million, and being highly reliant on new contracts to acheive sustainable revenue growth, I would argue that Xebec's revenues going forward are far more predictable than Greenlane's.
Xebec announced a backlog of $123.8 million in their Q4 release.
This doesn't include the recent $143 million order.
Greenlane announced a backlog of $50.1 million.
Greenlane includes "$850 million sales pipeline" in their Q4 financial highlights.
Xebec makes no reference to their "sales pipeline" in their most recent results.
It's my personal opinion that Xebec is a far better investment.
If anyone wants to argue that I'm not entitled to an opinion, go ahead and waste your breath.