CAI International (CAI) and Its Rivals Head-To-Head Review

CAI International (NYSE: CAI) is one of 16 public companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare CAI International to related companies based on the strength of its risk, dividends, valuation, profitability, analyst recommendations, institutional ownership and earnings.

Valuation and Earnings

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This table compares CAI International and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CAI International $348.39 million $72.06 million 7.19
CAI International Competitors $1.49 billion $246.69 million 0.08

CAI International’s rivals have higher revenue and earnings than CAI International. CAI International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares CAI International and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAI International 20.68% 11.21% 2.51%
CAI International Competitors -3.02% -3.36% -3.31%

Institutional & Insider Ownership

74.5% of CAI International shares are held by institutional investors. Comparatively, 58.4% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by institutional investors. 24.5% of CAI International shares are held by insiders. Comparatively, 14.3% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CAI International and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAI International 0 1 4 0 2.80
CAI International Competitors 80 393 630 50 2.56

CAI International presently has a consensus price target of $35.25, indicating a potential upside of 70.78%. As a group, “Equipment rental & leasing, not elsewhere classified” companies have a potential upside of 14.73%. Given CAI International’s stronger consensus rating and higher possible upside, research analysts plainly believe CAI International is more favorable than its rivals.

Volatility and Risk

CAI International has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500. Comparatively, CAI International’s rivals have a beta of 1.87, suggesting that their average share price is 87% more volatile than the S&P 500.

Summary

CAI International beats its rivals on 10 of the 13 factors compared.

About CAI International

CAI International, Inc. operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment. The company leases its container equipment to lessees under long-term, short-term, and finance leases. It also sells containers; and provides container management services to third-party investors, as well as sells used containers. In addition, the company leases railcars consisting of box cars for paper and forest products; covered hoppers for grain, cement, sand, plastic pallets, and other industrial products; general purpose tank cars that are used to transport food-grade, and other liquid and gaseous commodities; gondolas for coal and steel; and general service flat cars. Further, it offers domestic and international logistics services, including intermodal, truck brokerage, port drayage, warehousing, international ocean freight, and freight forwarding, as well as the arrangement and coordination of international air freight services and customs brokerage; international export and import services for full container loads, less than container loads, perishable cargo, project cargo, and airfreight; and transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility. As of December 31, 2017, the company had a container fleet comprised 1,282,739 cost equivalent units; and an owned fleet of 7,172 railcars in North America. The company was formerly known as Container Applications International, Inc. and changed its name to CAI International, Inc. in February 2007. CAI International, Inc. was founded in 1989 and is headquartered in San Francisco, California.

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