Analyzing Canadian National Railway (CNI) & its Peers
Canadian National Railway (NYSE: CNI) is one of 28 publicly-traded companies in the “Ground Freight & Logistics” industry, but how does it weigh in compared to its peers? We will compare Canadian National Railway to similar companies based off the strength of its dividends, valuation, analyst recommendations, institutional ownership, risk, earnings and profitability.
Earnings & Valuation
This table compares Canadian National Railway and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Canadian National Railway||$10.07 billion||$5.42 billion||21.22|
|Canadian National Railway Competitors||$5.89 billion||$1.72 billion||-6.29|
Canadian National Railway has higher revenue and earnings than its peers. Canadian National Railway is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.
Canadian National Railway pays an annual dividend of $1.32 per share and has a dividend yield of 1.6%. Canadian National Railway pays out 34.4% 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 35.7% of their earnings in the form of a dividend. Canadian National Railway has raised its dividend for 5 consecutive years.
Institutional & Insider Ownership
54.5% of Canadian National Railway shares are held by institutional investors. Comparatively, 71.4% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 2.4% of Canadian National Railway shares are held by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Canadian National Railway and its peers’ 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%|
|Canadian National Railway Competitors||11.42%||16.36%||5.73%|
This is a breakdown of recent ratings and recommmendations for Canadian National Railway and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Canadian National Railway||0||13||5||0||2.28|
|Canadian National Railway Competitors||227||1365||1807||71||2.50|
Canadian National Railway presently has a consensus price target of $81.36, indicating a potential downside of 0.16%. All “Ground Freight & Logistics” companies have a potential upside of 15.55%. Given Canadian National Railway’s peers stronger consensus rating and higher probable upside, analysts plainly believe Canadian National Railway has less favorable growth aspects than its peers.
Volatility and Risk
Canadian National Railway has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Canadian National Railway’s peers have a beta of 1.36, indicating that their average share price is 36% more volatile than the S&P 500.
Canadian National Railway peers beat Canadian National Railway on 8 of the 15 factors compared.
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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