Canadian Pacific Railway Limited (NYSE: CP) is one of 28 publicly-traded companies in the “Ground Freight & Logistics” industry, but how does it compare to its peers? We will compare Canadian Pacific Railway Limited to related companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Insider & Institutional Ownership

65.9% of Canadian Pacific Railway Limited shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are owned by institutional investors. 0.0% of Canadian Pacific Railway Limited shares are owned by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Canadian Pacific Railway Limited and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Pacific Railway Limited 0 4 19 0 2.83
Canadian Pacific Railway Limited Competitors 227 1376 1815 72 2.50

Canadian Pacific Railway Limited currently has a consensus target price of $188.74, suggesting a potential upside of 15.65%. As a group, “Ground Freight & Logistics” companies have a potential upside of 13.70%. Given Canadian Pacific Railway Limited’s stronger consensus rating and higher possible upside, research analysts clearly believe Canadian Pacific Railway Limited is more favorable than its peers.

Risk and Volatility

Canadian Pacific Railway Limited has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Canadian Pacific Railway Limited’s peers have a beta of 1.36, suggesting that their average share price is 36% more volatile than the S&P 500.

Dividends

Canadian Pacific Railway Limited pays an annual dividend of $1.67 per share and has a dividend yield of 1.0%. Canadian Pacific Railway Limited pays out 19.9% 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.

Earnings & Valuation

This table compares Canadian Pacific Railway Limited and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Canadian Pacific Railway Limited $5.14 billion $2.64 billion 19.43
Canadian Pacific Railway Limited Competitors $5.90 billion $1.73 billion -5.22

Canadian Pacific Railway Limited’s peers have higher revenue, but lower earnings than Canadian Pacific Railway Limited. Canadian Pacific Railway Limited is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Canadian Pacific Railway Limited and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Pacific Railway Limited 25.49% 33.06% 8.38%
Canadian Pacific Railway Limited Competitors 11.42% 16.36% 5.73%

Summary

Canadian Pacific Railway Limited beats its peers on 9 of the 15 factors compared.

About Canadian Pacific Railway Limited

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The Company operates through rail transportation segment. The Company’s transports bulk commodities, merchandise freight, and intermodal traffic over a network of approximately 12,400 miles. Its railway feeds directly into the United States heartland from the east and west coasts. Its Bulk commodities include grain, coal, potash, fertilizers and sulfur. Its Merchandise freight consists of finished vehicles and machinery, as well as forest and industrial and consumer products. Its Intermodal traffic consists of retail goods in overseas containers that can be transported by train, ship and truck and in domestic containers and trailers that can be moved by train and truck. Its subsidiaries include Canadian Pacific Railway Company, Soo Line Railroad Company, Delaware and Hudson Railway Company, Inc. and Mount Stephen Properties Inc.

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