Critical Analysis: Canadian National Railway (CNI) and XPO Intermodal (PACR)
Canadian National Railway (NYSE: CNI) and XPO Intermodal (NASDAQ:PACR) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
This is a breakdown of current ratings and price targets for Canadian National Railway and XPO Intermodal, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Canadian National Railway||1||8||7||0||2.38|
Canadian National Railway presently has a consensus price target of $81.00, indicating a potential downside of 0.88%.
Insider and Institutional Ownership
53.8% of Canadian National Railway shares are held by institutional investors. 2.4% of Canadian National Railway shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Canadian National Railway pays an annual dividend of $1.30 per share and has a dividend yield of 1.6%. XPO Intermodal does not pay a dividend. Canadian National Railway pays out 32.4% of its earnings in the form of a dividend. Canadian National Railway has raised its dividend for 5 consecutive years.
Valuation & Earnings
This table compares Canadian National Railway and XPO Intermodal’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Canadian National Railway||$9.11 billion||6.69||$2.75 billion||$4.01||20.38|
Canadian National Railway has higher revenue and earnings than XPO Intermodal. XPO Intermodal is trading at a lower price-to-earnings ratio than Canadian National Railway, indicating that it is currently the more affordable of the two stocks.
This table compares Canadian National Railway and XPO Intermodal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Canadian National Railway||29.98%||25.57%||10.29%|
Canadian National Railway beats XPO Intermodal on 10 of the 11 factors compared between the two stocks.
Canadian National Railway Company Profile
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.
XPO Intermodal Company Profile
Pacer International Inc. (Pacer) is a asset-light transportation and global logistics service provider. The Company provides its transportation services from two operating segments: intermodal and logistics. Intermodal provides intermodal transportation services (the movement of freight through trailer or container using two or more modes of transportation, which include rail and truck segments) principally to beneficial cargo owners (end-user customers), transportation intermediaries and steamship lines who use intermodal transportation. Logistics segment provides highway brokerage, supply chain management services, international freight forwarding, ocean shipping, and warehousing and distribution services to a variety of end-user customers. In April 2014, XPO Logistics Inc acquired the entire share capital of Pacer International Inc. In April 2014, it acquired Pacer International Inc.
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