Geodrill Ltd (GEO) - Stocktrades Canada

After seeing the great report on Major Drilling (MDI) wanted to get any thoughts on Geodrill which looks to be a smaller competitor in the same space. They seem to have been impacted by covid in some ways but looked to have decent earnings in the prior quarter at a decent valuation.

Marked as spam

Asked on February 21, 2021 6:56 pm

1 views

▲

▼

✔

Private answer

Hi there,

I think the same catalysts apply to GEO Drill. In fact, these two companies track each other quite closely in terms of performance. See attached image.

In terms of valuation GEO does look to be better valued at these levels based on several metrics including P/S, P/B, EV/Revenue and EV/Ebitda. Historically, it looks like MDI outperformed in bear markets and GEO in recent years. Overall, I'd say both have equal opportunity to do well. MDI is likely the safer play given its size and reputation, but GEO may have more upside based on current valuation metrics.

Mat

Marked as spam

Posted by Mathieu Litalien

Answered on February 22, 2021 5:12 am

« Back to Previous Page