Analyzing Guangshen Railway Co. Ltd ADR Class H (GSH) & Genesee & Wyoming (GWR)

Guangshen Railway Co. Ltd ADR Class H (NYSE:GSH) and Genesee & Wyoming (NYSE:GWR) are both mid-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Guangshen Railway Co. Ltd ADR Class H and Genesee & Wyoming, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guangshen Railway Co. Ltd ADR Class H 0 0 0 0 N/A
Genesee & Wyoming 2 6 2 1 2.18

Genesee & Wyoming has a consensus price target of $86.78, suggesting a potential upside of 9.86%. Given Genesee & Wyoming’s higher probable upside, analysts plainly believe Genesee & Wyoming is more favorable than Guangshen Railway Co. Ltd ADR Class H.

Volatility & Risk

Guangshen Railway Co. Ltd ADR Class H has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Genesee & Wyoming has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Guangshen Railway Co. Ltd ADR Class H 5.54% 3.81% 3.20%
Genesee & Wyoming 26.25% 5.81% 2.80%

Institutional and Insider Ownership

0.7% of Guangshen Railway Co. Ltd ADR Class H shares are owned by institutional investors. Comparatively, 92.7% of Genesee & Wyoming shares are owned by institutional investors. 71.4% of Guangshen Railway Co. Ltd ADR Class H shares are owned by insiders. Comparatively, 2.4% of Genesee & Wyoming shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Guangshen Railway Co. Ltd ADR Class H pays an annual dividend of $0.54 per share and has a dividend yield of 2.9%. Genesee & Wyoming does not pay a dividend.

Earnings & Valuation

This table compares Guangshen Railway Co. Ltd ADR Class H and Genesee & Wyoming’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guangshen Railway Co. Ltd ADR Class H $2.82 billion 0.95 $156.05 million N/A N/A
Genesee & Wyoming $2.21 billion 2.15 $549.05 million $2.91 27.14

Genesee & Wyoming has lower revenue, but higher earnings than Guangshen Railway Co. Ltd ADR Class H.

Summary

Genesee & Wyoming beats Guangshen Railway Co. Ltd ADR Class H on 10 of the 14 factors compared between the two stocks.

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.

About Genesee & Wyoming

Genesee & Wyoming Inc. owns and leases freight railroads. It operates through three segments: North American Operations, Australian Operations, and U.K./European Operations. The company transports various commodities, including agricultural products, autos and auto parts, chemicals and plastics, coal and coke, food and kindred products, lumber and forest products, metallic ores, metals, minerals and stone, petroleum products, pulp and paper, waste, and other commodities. It owns or leases 122 freight railroads, including 105 short line railroads and 2 regional freight railroads located in the United States, 8 short line railroads located in Canada, 3 railroads located in Australia, 1 railroad located in the United Kingdom, 1 railroad in Poland and Germany, and 2 railroads in the Netherlands with a total of approximately 16,200 miles of track. The company also operates 6,200 additional miles of track that is owned or leased by others. In addition, it operates deep sea maritime containers and provides bulk haulage, including coal, aggregates, cement, and infrastructure services. Further, the company provides rail service at approximately 40 ports; rail-ferry service in North America, Australia, and Europe; and contract coal loading and railcar switching for industrial customers. Genesee & Wyoming Inc. was founded in 1899 and is headquartered in Darien, Connecticut.

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