Critical Survey: Aurizon (QRNNF) and The Competition

Aurizon (OTCMKTS:QRNNF) is one of 102 public companies in the “Ground Transportation” industry, but how does it compare to its rivals? We will compare Aurizon to similar businesses based on the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.

Profitability

This table compares Aurizon and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aurizon	N/A	N/A	N/A
Aurizon Competitors	5.40%	9.33%	3.79%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Aurizon and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aurizon	0	1	0	0	2.00
Aurizon Competitors	1333	6317	8402	251	2.46

Aurizon presently has a consensus target price of $3.80, indicating a potential upside of 22.58%. As a group, “Ground Transportation” companies have a potential upside of 11.68%. Given Aurizon’s higher possible upside, equities analysts plainly believe Aurizon is more favorable than its rivals.

Earnings & Valuation

This table compares Aurizon and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aurizon	N/A	N/A	26.27
Aurizon Competitors	$8.60 billion	$895.12 million	48.55

Aurizon’s rivals have higher revenue and earnings than Aurizon. Aurizon is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Aurizon pays an annual dividend of $0.06 per share and has a dividend yield of 2.1%. Aurizon pays out 54.2% of its earnings in the form of a dividend. As a group, “Ground Transportation” companies pay a dividend yield of 1.4% and pay out 28.0% of their earnings in the form of a dividend.

Insider & Institutional Ownership

13.3% of Aurizon shares are held by institutional investors. Comparatively, 59.7% of shares of all “Ground Transportation” companies are held by institutional investors. 15.2% of shares of all “Ground Transportation” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Aurizon rivals beat Aurizon on 11 of the 13 factors compared.

About Aurizon

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. The company also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. It serves miners, primary producers, and the industry. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. The company was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.