Canadian Pacific Railway (NYSE: CP) and Vitran (NASDAQ:VTNC) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Canadian Pacific Railway pays an annual dividend of $1.83 per share and has a dividend yield of 1.0%. Vitran does not pay a dividend. Canadian Pacific Railway pays out 11.6% of its earnings in the form of a dividend. Vitran has raised its dividend for 2 consecutive years.
Volatility & Risk
Canadian Pacific Railway has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Vitran has a beta of 2.37, meaning that its stock price is 137% more volatile than the S&P 500.
Insider & Institutional Ownership
68.5% of Canadian Pacific Railway shares are owned by institutional investors. 0.0% of Canadian Pacific Railway shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Canadian Pacific Railway and Vitran’s net margins, return on equity and return on assets.
Valuation and Earnings
This table compares Canadian Pacific Railway and Vitran’s top-line revenue, earnings per share (EPS) and valuation.
Canadian Pacific Railway has higher revenue and earnings than Vitran. Vitran is trading at a lower price-to-earnings ratio than Canadian Pacific Railway, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Canadian Pacific Railway and Vitran, as provided by MarketBeat.com.
Canadian Pacific Railway currently has a consensus price target of $195.07, suggesting a potential upside of 7.81%. Given Canadian Pacific Railway’s higher probable upside, equities analysts plainly believe Canadian Pacific Railway is more favorable than Vitran.
Canadian Pacific Railway beats Vitran on 11 of the 14 factors compared between the two stocks.
Canadian Pacific Railway Company Profile
Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The Company operates through rail transportation segment. The Company’s transports bulk commodities, merchandise freight, and intermodal traffic over a network of approximately 12,400 miles. Its railway feeds directly into the United States heartland from the east and west coasts. Its Bulk commodities include grain, coal, potash, fertilizers and sulfur. Its Merchandise freight consists of finished vehicles and machinery, as well as forest and industrial and consumer products. Its Intermodal traffic consists of retail goods in overseas containers that can be transported by train, ship and truck and in domestic containers and trailers that can be moved by train and truck. Its subsidiaries include Canadian Pacific Railway Company, Soo Line Railroad Company, Delaware and Hudson Railway Company, Inc. and Mount Stephen Properties Inc.
Vitran Company Profile
Vitran Corporation Inc. (Vitran), is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company’s business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran’s business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business. In March 2014, TransForce Inc completed the acquisition of Vitran.