There are 4 listed in the space. SIQ, MMS, FPR (previously...

There are 4 listed in the space. SIQ, MMS, FPR (previously called ECX - Eclipse Group) and SGF.

A couple of years ago I did a comparison across all 4 companies.

SIQ and MMS were superior in terms of ROE and margins.
SIQ is capital lite and services mainly govt and not for profits whilst MMS services the corporate sector.Both have a similar product split with a bigger emphasis on novated leasing and salary packaging.

FPR and SGF had lowervROE’s and lower margins. Both of these had more profits coming from fleet management services and margins on selling cars secondhand after a car was handed back at the end of a lease arrangement. Hence during Covid FPR and SGF made a lot of money due to escalating secondhand car prices. This has now reversed and returned to a more normal pricing environment.

My preference is SIQ but I believe MMS is very well run. SGF also has a SouthbAfrican substantial shareholder with more than 50% so there will never be a takeover premium in its SP.

A few years ago there was talk about consolidation between these four however nothing came of it.

Hope you find these notes helpful.

Cheers……D