Quality Distribution (NASDAQ: QLTY) and Canadian National Railway (NYSE:CNI) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

This table compares Quality Distribution and Canadian National Railway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quality Distribution 0.95% N/A 2.09%
Canadian National Railway 30.59% 25.42% 10.24%

Dividends

Canadian National Railway pays an annual dividend of $1.22 per share and has a dividend yield of 1.5%. Quality Distribution does not pay a dividend. Canadian National Railway pays out 31.8% of its earnings in the form of a dividend. Quality Distribution has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Quality Distribution and Canadian National Railway, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quality Distribution 0 0 0 0 N/A
Canadian National Railway 0 13 5 0 2.28

Canadian National Railway has a consensus price target of $81.36, indicating a potential upside of 1.56%. Given Canadian National Railway’s higher probable upside, analysts clearly believe Canadian National Railway is more favorable than Quality Distribution.

Insider and Institutional Ownership

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quality Distribution N/A N/A N/A N/A N/A
Canadian National Railway $10.17 billion 5.92 $5.48 billion $3.84 20.86

Canadian National Railway has higher revenue and earnings than Quality Distribution.

Summary

Canadian National Railway beats Quality Distribution on 9 of the 11 factors compared between the two stocks.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

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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