Hi there,
At first glance, Bird (BDT) looks like a value play. It is trading at only 9.47 times forward earnings. However, this is a company that has struggle for a long time. If you look at its five-year chart, its pretty ugly and it even cut its dividend my more than half back in 2017. So it even has a sketchy history as an income play. Revenue has been stagnant over the past five years (average growth of 0.21%) and it has poste negative earnings growth (-23% annual average).
The good news is that was the past. Moving forward, analyst are actually expecting pretty big things out of the company. After years of flat revenue growth, in 2021 Revenue is expected to jump to $2.4B a 73% increase of 2019 levels. Furthermore, earnings are expected to grow by ~50% and analysts have a one-year price target of $9.60 per share. Also of note, all 6 covering the company rate it a buy. IMO, it is an interesting value play considering the expected growth rates and the market is not yet pricing in this level of growth. Perhaps poor historical performance is leading to skepticism.
As for PFB Crop, we have a similar value play. Unlike Bird however, PFB has had a consistent history of delivering stable results. It has grown revenue and earnings at a high, single-digit clip and is once again on track to deliver record results in 2020. Looking forward, the expectation is for much of the same - mid-to-high, single digit growth. Interestingly, the company's stock had gone nowhere until this year when it shot up in a pretty big way. This was long considered a value stock but got zero traction until the pandemic hit and the home building/renovation market soared.
It is also worth noting that PFB has quietly put together a five-year dividend growth streak and announced a nice $1.00 special dividend per share this year (likely a result of strong demand). This means, that it should officially join the list of Canadian Dividend Aristocrats next year and should have the net effect of increasing its exposure.
Given the company now trades at 10.54 times earnings, it is not long super cheap based on its expected growth rates. I would however, expect the company to grow inline (or slightly above) with expected growth rates from here on out.
Mat