Are Bingo Industries and Greencross good stocks for growth or income?

Stocks’ Details
 

Bingo Industries Ltd (ASX: BIN)

Trading at higher levels:Bingo Industries Ltd.’s (ASX: BIN) stock fell slightly by 0.7% on April 05, 2018, while Washington H. Soul Pattinson invested in BIN shares to have 5.1% interest. Soul Pattinson generally makes investments in larger and smaller companies; and investing in smaller companies makes Soul Pattinson a major shareholder. On the other hand, BIN for 1H 2018 delivered strong revenue and pro forma EBITDA growth of 43% and 40%, respectively. Moreover, BIN has reaffirmed its FY18 pro forma EBITDA guidance of approximately $93 million, with completed acquisitions expected to contribute more significantly in 2H FY18. The company during 1H 2018 had acquired National Recycling Group (NRG) and Patons Lane Recycling Centre and Landfill. Additionally, BIN has grown the network capacity by 70% since listing in May 2017 to 1.7 million tonnes per annum and is on track to double the footprint by 2020, to meet the growing demand for recycling. Further, the company is expanding its Commercial & Industrial (C&I) business and has accelerated expansion into Victoria through successful completion of acquisition program. The company in 1H 2018 had appointed Chief Operating Officer, Head of Project Development, General Manager of Victoria and National Procurement Manager. Meanwhile, BIN stock has risen 31.7% in last six months as on April 04, 2018 and is trading at a very high P/E. Based on the foregoing, we believe that the stock is “Expensive” at the current price of $2.790.
 

Greencross Ltd

Integrated Petcare model: Greencross Ltd (ASX: GXL) is emerging as a one stop shop for veterinary needs along with having a profitable online business channel. The group had reported 9% growth in the revenue to $433.3 million in 1H 2018, driven by 4.5% Group LFL sales growth and network expansion. Online, in-store GP clinics and specialist and emergency have also been the major drivers of growth in revenue. GXL’s Australian online sales during 1H 2018 have risen by 92% to $9 million and represent 3.4% of Australian retail sales. The company’s NPAT is up 9% to $23.2 million and underlying NPAT is up 11% to $24.4 million for 1H 2018. Moreover, GXL business is performing in line with plan in FY18 YTD and the company remains comfortable with market consensus for the full year result. Additionally, till date in the second half, GXL has opened 2 in-store clinics and has completed 1 vet acquisition, which is expected to contribute to annualized EBITDA of 1 million. Meanwhile, GXL stock has fallen 18.89% in three months as on April 04, 2018 with increased competition based on the arrival of Amazon in the retail space. However, GXL stock is trading at a reasonable P/E and has room for growth given roll-out of its veterinary clinics within the retail stores. Therefore, we give a “Buy” recommendation on the stock at the current price of $5.190.
 

Dividend History (Source: Company Reports)

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