ComparisonDisclosure: Of the four, I own DFY and TSU. GLTA
Am considering taking a position in one of these companies (IFC, POW, DFY and TSU) that I believe are in similar type businesses. How would you rank them and why? IFC and POW are the largest of the group, helping to support their long-term viability prospects, and between IFC and POW we would side with IFC today.
Between TSU and DFY, TSU has demonstrated a stronger sales and earnings growth rate over the years, and a better free cash flow yield. TSU trades at a cheaper valuation to DFY, but has had some issues over the past year with a business writedown. We like the recent momentum of DFY over TSU, but we feel that once the issues clear with TSU, that it can see strong forward returns. Overall, we would give TSU the slight edge today for forward expected returns.
If one is looking for a more conservative approach, we would side with IFC, if one is looking for more growth and slightly higher risk, we like TSU. (5iResearch)