Yeah, Marc, I saw that about DCI having the better stock price over longer time frames. Also better revenue growth rates.
Plus, in terms of the important ROE factor, I note now that DCI has had increasing ROE (past few years) and is pulling ahead of PLL.
(Maybe I will have to adjust up my buy price for DCI afterall -g-.)
I selected the 2-year period in the last post because I'm reluctant to go too far back or forward with the comparisons. I don't know enough about the markets each company services. I assume there's overlap, but also some special niches for each -- for example PLL's strength in blood filtration. It looks to me like DCI is going to catch PLL in revenue. But I don't know enough about the margins for the market segments, so I'm not able to guess which company is going to be more profitable and more deserving of a higher p/e.
Paradoxically, although I find myself reluctant to make long term comparisons between DCI and PLL, I am willing to look back to compare PLL with itself and DCI with itself. I'm willing to invest in either company based on this rear view mirror look. (I say they've both been good performing companies for many years, if not decades, and have a decent business for which I can see continued demand.) For PLL, I can get a low relative (to itself) price for its good historical performance (sales, earnings, dividend improvement), so I'm a buyer now, and I'll continue to monitor DCI.
My history in choosing the best stock from a given category is that I pick the wrong stock. (And I don't always chose what looks to me to be the cheapest either.) I seem to do better if I pick a basket or all (i.e buy several companies but buy fewer shares/co although same total $ commitment to the category). Still, it's hard for me to step up now to DCI since I didn't when I had many chances when DCI was lower. Just don't like to chase, even though, as you point out, DCI right now could very well be a far better investment than PLL at PLL's "lower" price.
We'll know more as time goes by. It would be nice, and it's very possible, that we both could wind up satisfied with our respective investments here.
Paul S. |
