Con-way (NYSE: CNW) and Canadian National Railway (NYSE:CNI) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Dividends

Canadian National Railway pays an annual dividend of $1.22 per share and has a dividend yield of 1.5%. Con-way does not pay a dividend. Canadian National Railway pays out 31.8% of its earnings in the form of a dividend. Con-way has increased its dividend for 5 consecutive years and Canadian National Railway has increased its dividend for 3 consecutive years.

Profitability

This table compares Con-way and Canadian National Railway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Con-way 3.09% 14.75% 5.26%
Canadian National Railway 30.59% 25.42% 10.24%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Con-way and Canadian National Railway, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Con-way 0 0 0 0 N/A
Canadian National Railway 0 13 5 0 2.28

Canadian National Railway has a consensus price target of $81.36, suggesting a potential upside of 2.34%. Given Canadian National Railway’s higher probable upside, analysts clearly believe Canadian National Railway is more favorable than Con-way.

Valuation & Earnings

This table compares Con-way and Canadian National Railway’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Con-way N/A N/A N/A N/A N/A
Canadian National Railway $10.17 billion 5.87 $5.48 billion $3.84 20.70

Canadian National Railway has higher revenue and earnings than Con-way.

Insider and Institutional Ownership

55.3% 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Canadian National Railway beats Con-way on 9 of the 11 factors compared between the two stocks.

Con-way Company Profile

Con-way Inc. (Con-way) provides transportation, logistics and supply-chain management services for a range of manufacturing, industrial and retail customers. The Company’s business units operate in regional, inter-regional and transcontinental less-than-truckload and full-truckload freight transportation, multimodal freight brokerage and trailer manufacturing. The Company operates in three segments: Freight, Logistics and Truckload. The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services. The Logistics segment consists of the operating results of the Menlo Logistics (Menlo) business unit, which develops contract-logistics solutions. The Truckload segment consists of the operating results of the Con-way Truckload business unit.

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.

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