Financial Survey: Canadian Pacific Kansas City (CP) vs. Its Peers

Canadian Pacific Kansas City (NYSE:CP) is one of 100 publicly-traded companies in the “Ground Transportation” industry, but how does it contrast to its competitors? We will compare Canadian Pacific Kansas City to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

72.2% of Canadian Pacific Kansas City shares are held by institutional investors. Comparatively, 60.5% of shares of all “Ground Transportation” companies are held by institutional investors. 0.0% of Canadian Pacific Kansas City shares are held by insiders. Comparatively, 15.5% of shares of all “Ground Transportation” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Canadian Pacific Kansas City and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Pacific Kansas City	0	4	12	1	2.82
Canadian Pacific Kansas City Competitors	1370	6534	8697	267	2.47

Canadian Pacific Kansas City presently has a consensus target price of $112.58, suggesting a potential upside of 20.12%. As a group, “Ground Transportation” companies have a potential upside of 17.67%. Given Canadian Pacific Kansas City’s stronger consensus rating and higher possible upside, analysts clearly believe Canadian Pacific Kansas City is more favorable than its competitors.

Dividends

Canadian Pacific Kansas City pays an annual dividend of $0.77 per share and has a dividend yield of 0.8%. Canadian Pacific Kansas City pays out 24.7% of its earnings in the form of a dividend. As a group, “Ground Transportation” companies pay a dividend yield of 1.5% and pay out 26.9% of their earnings in the form of a dividend.

Volatility and Risk

Canadian Pacific Kansas City has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Canadian Pacific Kansas City’s competitors have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Canadian Pacific Kansas City and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canadian Pacific Kansas City	$10.79 billion	$2.96 billion	30.04
Canadian Pacific Kansas City Competitors	$8.74 billion	$911.04 million	1.09

Canadian Pacific Kansas City has higher revenue and earnings than its competitors. Canadian Pacific Kansas City 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.

Profitability

This table compares Canadian Pacific Kansas City and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Pacific Kansas City	24.14%	9.27%	4.96%
Canadian Pacific Kansas City Competitors	6.91%	12.57%	3.99%

Summary

Canadian Pacific Kansas City beats its competitors on 11 of the 15 factors compared.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited (NYSE: CP), known as CPKC, operates a transcontinental freight railway. Its network connects Canada, the United States and Mexico, providing rail transportation and related logistics services for businesses across North America. CPKC carries a range of goods, including grain and other agricultural products, intermodal freight, automotive shipments, energy products, chemicals, forest products and industrial materials. Its services include rail freight transportation, intermodal shipping and logistics solutions.