Comparison Between PLC and SIS, which has the best outlook for the next 2 to 3 years?
We consider both names to be solid considering their market share, cash flow profile and margin expansion. Both have leveraged balance sheets, however, that is expected from companies in their respective industries. Looking forward, both companies expect similar top-line growth, however, SIS is expected to see a faster margin expansion in comparison. Thus 2024 EPS growth for SIS is expected in the 25% range. SIS is 23X earnings, PLC is 17X. SIS has a higher yield (3.1% vs 1.8%). Debt/cash flow is slightly lower for PLC. SIS has outperformed, and in the short term its growth is likely a little less dependent on acquisitions. (5iResearch)