Canadian National Railway (NYSE: CNI) and Schneider National (NASDAQ:SNDR) are both mid-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Canadian National Railway and Schneider National, 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
Schneider National 0 2 7 0 2.78

Canadian National Railway presently has a consensus target price of $81.36, suggesting a potential downside of 0.77%. Schneider National has a consensus target price of $22.43, suggesting a potential downside of 7.89%. Given Canadian National Railway’s higher possible upside, research analysts clearly believe Canadian National Railway is more favorable than Schneider National.

Profitability

This table compares Canadian National Railway and Schneider National’s 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%
Schneider National 4.32% 13.37% 5.98%

Earnings & Valuation

This table compares Canadian National Railway and Schneider National’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Canadian National Railway $10.20 billion 6.04 $5.49 billion $3.84 21.35
Schneider National $4.20 billion 1.03 $544.67 million N/A N/A

Canadian National Railway has higher revenue and earnings than Schneider National.

Insider and Institutional Ownership

54.5% of Canadian National Railway shares are held by institutional investors. 2.4% of Canadian National Railway shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Canadian National Railway pays an annual dividend of $1.32 per share and has a dividend yield of 1.6%. Schneider National does not pay a dividend. Canadian National Railway pays out 34.4% of its earnings in the form of a dividend. Canadian National Railway has raised its dividend for 5 consecutive years.

Summary

Canadian National Railway beats Schneider National on 12 of the 15 factors compared between the two stocks.

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.

About Schneider National

Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.

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