Financial Comparison: East Japan Railway (OTCMKTS:EJPRY) and Aurizon (OTCMKTS:QRNNF)

East Japan Railway (OTCMKTS:EJPRY) and Aurizon (OTCMKTS:QRNNF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Institutional & Insider Ownership

0.0% of East Japan Railway shares are owned by institutional investors. Comparatively, 13.3% of Aurizon shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares East Japan Railway and Aurizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
East Japan Railway	N/A	N/A	N/A
Aurizon	N/A	N/A	N/A

Dividends

East Japan Railway pays an annual dividend of $0.15 per share and has a dividend yield of 1.3%. Aurizon pays an annual dividend of $0.06 per share and has a dividend yield of 2.3%. East Japan Railway pays out 0.2% of its earnings in the form of a dividend. Aurizon pays out 54.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for East Japan Railway and Aurizon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
East Japan Railway	0	1	0	1	3.00
Aurizon	0	1	0	0	2.00

Aurizon has a consensus target price of $3.80, indicating a potential upside of 37.68%. Given Aurizon’s higher probable upside, analysts clearly believe Aurizon is more favorable than East Japan Railway.

Earnings and Valuation

This table compares East Japan Railway and Aurizon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
East Japan Railway	N/A	N/A	N/A	$84.74	0.13
Aurizon	N/A	N/A	N/A	$0.12	23.39

East Japan Railway is trading at a lower price-to-earnings ratio than Aurizon, indicating that it is currently the more affordable of the two stocks.

About East Japan Railway

East Japan Railway Company operates as a passenger railway company in Japan and internationally. The company operates through Transportation, Retail & Services, Real Estate & Hotels, and Others segments. It offers passenger railway, freight, bus transportation, travel agency, warehousing, financial, telecommunication, computer-related data, and dry cleaning, casualty insurance, and other agency services. The company is also involved in the operation of aerial cableway and parking lot; advertising and promotion; books and magazines publication; automobile maintenance and repair; hotel and restaurant management; civil engineering and general construction; facilities construction; and electricity supply businesses. In addition, it engages in the sale of prepaid vouchers, memberships for sport and leisure facilities, including golf and tennis clubs; and oil, gas, and car accessories; travel goods, food, beverages, liquors, medicines, cosmetics, and daily necessities. Further, the company is involved in the sale, leasing, management, and brokerage of real estate properties; manufacture of transport-related machinery and equipment, as well as precision and industrial machinery and tools; production and sale of signs and information boards; and establishment and management of recreation areas, physical fitness facilities, cultural facilities, preparatory schools and other educational facilities, and movie theaters. Additionally, it engages in the production of beverages and liquors; processing and sale of marine products; manufacture and sale of aggregates, masonry materials, concrete posts, and blocks; sale of tickets for events; and photo development activities. As of April 1, 2023, the company operated 1,681 railway stations and 7,401.2 kilometers of railway network. East Japan Railway Company was incorporated in 1987 and is headquartered in Tokyo, Japan.

About Aurizon

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. The company also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. It serves miners, primary producers, and the industry. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. The company was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.