Contrasting Canadian National Railway (CNI) and Guangshen Railway Co. Ltd ADR Class H (GSH)

Canadian National Railway (NYSE:CNI) and Guangshen Railway Co. Ltd ADR Class H (NYSE:GSH) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

54.2% of Canadian National Railway shares are owned by institutional investors. Comparatively, 0.7% of Guangshen Railway Co. Ltd ADR Class H shares are owned by institutional investors. 2.4% of Canadian National Railway shares are owned by insiders. Comparatively, 71.4% of Guangshen Railway Co. Ltd ADR Class H shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Canadian National Railway and Guangshen Railway Co. Ltd ADR Class H’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian National Railway 42.06% 22.67% 9.89%
Guangshen Railway Co. Ltd ADR Class H 5.54% 3.81% 3.20%

Analyst Recommendations

This is a summary of current recommendations and price targets for Canadian National Railway and Guangshen Railway Co. Ltd ADR Class H, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian National Railway 0 11 7 0 2.39
Guangshen Railway Co. Ltd ADR Class H 0 0 0 0 N/A

Canadian National Railway currently has a consensus price target of $91.08, suggesting a potential upside of 7.10%. Given Canadian National Railway’s higher possible upside, equities analysts clearly believe Canadian National Railway is more favorable than Guangshen Railway Co. Ltd ADR Class H.

Earnings & Valuation

This table compares Canadian National Railway and Guangshen Railway Co. Ltd ADR Class H’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian National Railway $10.06 billion 6.16 $4.23 billion $3.84 22.15
Guangshen Railway Co. Ltd ADR Class H $2.82 billion 0.95 $156.05 million N/A N/A

Canadian National Railway has higher revenue and earnings than Guangshen Railway Co. Ltd ADR Class H.

Risk & Volatility

Canadian National Railway has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Guangshen Railway Co. Ltd ADR Class H has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Dividends

Canadian National Railway pays an annual dividend of $1.38 per share and has a dividend yield of 1.6%. Guangshen Railway Co. Ltd ADR Class H pays an annual dividend of $0.54 per share and has a dividend yield of 2.9%. Canadian National Railway pays out 35.9% of its earnings in the form of a dividend. Canadian National Railway has increased its dividend for 6 consecutive years.

Summary

Canadian National Railway beats Guangshen Railway Co. Ltd ADR Class H on 11 of the 15 factors compared between the two stocks.

About Canadian National Railway

Canadian National Railway Company engages in rail and related transportation business. The company transports cargo serving exporters, importers, retailers, farmers, and manufacturers. It operates a network of approximately 20,000 route miles of track spans Canada and mid-America connecting the Atlantic, the Pacific, and the Gulf of Mexico. The company serves the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), as well as the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi) with connections to various points in North America. Canadian National Railway Company was founded in 1919 and is headquartered in Montreal, Canada.

About Guangshen Railway Co. Ltd ADR Class H

Guangshen Railway Company Limited engages in the railroad passenger and freight transportation business in the People's Republic of China. The company's passenger transportation services include the operation of Guangzhou-Shenzhen inter-city express trains, long-distance trains, and Guangzhou-Hong Kong city through trains. Its freight transportation services comprise the transportation of full load and single load cargo, containers, bulky and overweight cargo, dangerous cargo, fresh and live cargo, and oversized cargo. The company also provides railway network usage services; and other transportation-related services, such as railway operation, locomotive and passenger car leasing, passenger service, and luggage transportation services, as well as sells food, beverages, and merchandise on board the trains and in railway stations. In addition, it is involved in train repair, materials and supplies sale, on-board catering, goods sale, cargo loading and unloading, and other businesses related to railway transportation, as well as offers warehousing, hotel management, freight transport and packaging agency, and catering management services. Further, the company engages in property management and real estate construction activities; and the supervision of construction projects. As of December 31, 2017, it operated 251 pairs of passenger trains on a daily basis, including 107 pairs of intercity high-speed passenger trains between Guangzhou and Shenzhen, 13 pairs of Hong Kong Through Trains, and 131 pairs of long-distance trains. The company was founded in 1996 and is based in Shenzhen, the People's Republic of China.

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