Canadian National Railway (NYSE: CNI) and Quality Distribution (NASDAQ:QLTY) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Profitability

This table compares Canadian National Railway and Quality Distribution’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian National Railway 30.59% 25.42% 10.24%
Quality Distribution 0.95% N/A 2.09%

Dividends

Canadian National Railway pays an annual dividend of $1.22 per share and has a dividend yield of 1.5%. Quality Distribution does not pay a dividend. Canadian National Railway pays out 31.8% of its earnings in the form of a dividend. Canadian National Railway has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Canadian National Railway and Quality Distribution, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian National Railway 0 13 5 0 2.28
Quality Distribution 0 0 0 0 N/A

Canadian National Railway currently has a consensus price target of $81.36, indicating a potential upside of 1.56%. Given Canadian National Railway’s higher probable upside, equities research analysts plainly believe Canadian National Railway is more favorable than Quality Distribution.

Insider & Institutional Ownership

55.6% of Canadian National Railway shares are owned by institutional investors. 2.4% of Canadian National Railway shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Canadian National Railway and Quality Distribution’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Canadian National Railway $10.17 billion 5.92 $5.48 billion $3.84 20.86
Quality Distribution N/A N/A N/A N/A N/A

Canadian National Railway has higher revenue and earnings than Quality Distribution.

Summary

Canadian National Railway beats Quality Distribution on 10 of the 11 factors compared between the two stocks.

About Canadian National Railway

Canadian National Railway Company is engaged in the rail and related transportation business. The Company’s network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America. Its network and connections to all Class I railroads provide its customers access to the three North American Free Trade Agreement nations. It carries over 300 million tons of cargo, serving exporters, importers, retailers, farmers and manufacturers. Its freight includes seven commodity representing a portfolio of goods.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

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