XPO Intermodal (PACR) versus Canadian Pacific Railway (CP) Financial Contrast

XPO Intermodal (NASDAQ: PACR) and Canadian Pacific Railway (NYSE:CP) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for XPO Intermodal and Canadian Pacific Railway, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XPO Intermodal 0 0 0 0 N/A
Canadian Pacific Railway 0 3 14 0 2.82

Canadian Pacific Railway has a consensus price target of $191.87, suggesting a potential upside of 6.75%.

Dividends

Canadian Pacific Railway pays an annual dividend of $1.76 per share and has a dividend yield of 1.0%. XPO Intermodal does not pay a dividend. Canadian Pacific Railway pays out 17.9% of its earnings in the form of a dividend. XPO Intermodal has raised its dividend for 2 consecutive years.

Earnings & Valuation

This table compares XPO Intermodal and Canadian Pacific Railway’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XPO Intermodal N/A N/A N/A $0.23 N/A
Canadian Pacific Railway $4.71 billion 5.54 $1.21 billion $9.81 18.32

Canadian Pacific Railway has higher revenue and earnings than XPO Intermodal. XPO Intermodal 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.

Profitability

This table compares XPO Intermodal and Canadian Pacific Railway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XPO Intermodal N/A N/A N/A
Canadian Pacific Railway 27.92% 31.91% 8.46%

Institutional and Insider Ownership

67.5% of Canadian Pacific Railway shares are held by institutional investors. 0.0% of Canadian Pacific Railway shares are held by insiders. 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.

Summary

Canadian Pacific Railway beats XPO Intermodal on 9 of the 11 factors compared between the two stocks.

About XPO Intermodal

Pacer International Inc. (Pacer) is a asset-light transportation and global logistics service provider. The Company provides its transportation services from two operating segments: intermodal and logistics. Intermodal provides intermodal transportation services (the movement of freight through trailer or container using two or more modes of transportation, which include rail and truck segments) principally to beneficial cargo owners (end-user customers), transportation intermediaries and steamship lines who use intermodal transportation. Logistics segment provides highway brokerage, supply chain management services, international freight forwarding, ocean shipping, and warehousing and distribution services to a variety of end-user customers. In April 2014, XPO Logistics Inc acquired the entire share capital of Pacer International Inc. In April 2014, it acquired Pacer International Inc.

About Canadian Pacific Railway

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.

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