Contrasting Canadian National Railway (CNI) & Con-way (CNW)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Canadian National Railway and Con-way, 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
Con-way 0 0 0 0 N/A

Canadian National Railway presently has a consensus target price of $81.36, indicating a potential upside of 1.23%. Given Canadian National Railway’s higher probable upside, equities research analysts clearly believe Canadian National Railway is more favorable than Con-way.

Profitability

This table compares Canadian National Railway and Con-way’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%
Con-way 3.09% 14.75% 5.26%

Insider & Institutional Ownership

55.6% of Canadian National Railway shares are held by institutional investors. 2.4% of Canadian National Railway shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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. Canadian National Railway has increased its dividend for 5 consecutive years and Con-way has increased its dividend for 3 consecutive years.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Canadian National Railway $10.17 billion 5.93 $5.48 billion $3.84 20.93
Con-way N/A N/A N/A N/A N/A

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

Summary

Canadian National Railway beats Con-way on 10 of the 11 factors compared between the two stocks.

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.

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.

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