Canadian National Railway (NYSE: CNI) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it contrast to its competitors? We will compare Canadian National Railway to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Canadian National Railway and its competitors’ 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%
Canadian National Railway Competitors 11.42% 16.36% 5.73%

Valuation & Earnings

This table compares Canadian National Railway and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Canadian National Railway $10.07 billion $5.42 billion 21.26
Canadian National Railway Competitors $5.89 billion $1.72 billion -3.32

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

Insider & Institutional Ownership

54.5% of Canadian National Railway shares are held by institutional investors. Comparatively, 71.4% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 2.4% of Canadian National Railway shares are held by insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Canadian National Railway has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Canadian National Railway’s competitors have a beta of 1.36, meaning that their average stock price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Canadian National Railway and its competitors, 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
Canadian National Railway Competitors 227 1372 1811 72 2.50

Canadian National Railway currently has a consensus target price of $81.36, suggesting a potential downside of 0.35%. As a group, “Ground Freight & Logistics” companies have a potential upside of 16.62%. Given Canadian National Railway’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Canadian National Railway has less favorable growth aspects than its competitors.

Dividends

Canadian National Railway pays an annual dividend of $1.32 per share and has a dividend yield of 1.6%. Canadian National Railway pays out 34.4% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.7% and pay out 36.0% of their earnings in the form of a dividend. Canadian National Railway has raised its dividend for 5 consecutive years.

Summary

Canadian National Railway competitors beat Canadian National Railway on 8 of the 15 factors compared.

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.

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