Reviewing Central Japan Railway (CJPRY) and Its Competitors

Volatility and Risk

Central Japan Railway has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Central Japan Railway’s competitors have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Profitability

This table compares Central Japan Railway and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Japan Railway	27.29%	10.75%	5.08%
Central Japan Railway Competitors	5.39%	9.39%	3.79%

Institutional and Insider Ownership

0.0% of Central Japan Railway shares are owned by institutional investors. Comparatively, 60.6% of shares of all “Ground Transportation” companies are owned by institutional investors. 15.5% of shares of all “Ground Transportation” companies are owned by company 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.

Dividends

Central Japan Railway pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. Central Japan Railway pays out 3.2% 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 27.6% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Central Japan Railway and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Central Japan Railway	$13.33 billion	$3.65 billion	6.51
Central Japan Railway Competitors	$8.58 billion	$895.12 million	51.42

Central Japan Railway has higher revenue and earnings than its competitors. Central Japan Railway is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Central Japan Railway beats its competitors on 6 of the 11 factors compared.

Central Japan Railway Company Profile

Central Japan Railway Company engages in the railway and related businesses in Japan. The company operates through Transportation, Merchandise and Other, Real Estate, and Other segments. It primarily operates Tokaido Shinkansen, a transportation artery that links metropolitan areas of Tokyo, Nagoya, and Osaka, as well as a network of 12 conventional lines centered on the Nagoya and Shizuoka areas. The company also provides bus, logistics, travel agency, advertising, linen supply, track maintenance, construction and construction consulting, and contracted accounting and financial services; and manufactures and maintains railway rolling stock and machinery. In addition, it is involved in the operation of a department store; wholesale and retail sales business; sale of food and beverages; leasing and sale of real estate; hotel business; and development, improvement, and maintenance of computer systems. The company was incorporated in 1987 and is headquartered in Nagoya, Japan.