Grupo Traxión (OTCMKTS:GRPOF) vs. Canadian National Railway (NYSE:CNI) Critical Survey

Canadian National Railway (NYSE:CNI) and Grupo Traxión (OTCMKTS:GRPOF) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Profitability

This table compares Canadian National Railway and Grupo Traxión’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian National Railway	32.81%	23.17%	9.00%
Grupo Traxión	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Canadian National Railway and Grupo Traxión, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian National Railway	0	17	3	0	2.15
Grupo Traxión	0	0	1	0	3.00

Canadian National Railway currently has a consensus target price of $134.47, suggesting a potential upside of 7.77%. Given Canadian National Railway’s higher possible upside, analysts plainly believe Canadian National Railway is more favorable than Grupo Traxión.

Valuation and Earnings

This table compares Canadian National Railway and Grupo Traxión’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian National Railway	$12.47 billion	6.39	$4.17 billion	$6.27	19.90
Grupo Traxión	N/A	N/A	N/A	N/A	N/A

Canadian National Railway has higher revenue and earnings than Grupo Traxión.

Institutional & Insider Ownership

80.7% of Canadian National Railway shares are held by institutional investors. 2.4% of Canadian National Railway shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Canadian National Railway beats Grupo Traxión on 8 of the 9 factors compared between the two stocks.

About Canadian National Railway

Canadian National Railway Company, together with its subsidiaries, engages in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. The company provides rail services, which include equipment, custom brokerage services, transloading and distribution, business development and real estate, and private car storage services; and intermodal services, such as temperature controlled cargo, port partnerships, and logistics parks. It offers trucking services, such as door-to-door services, import and export dray, interline services, and specialized services, comprising flatbed trucks, on-deck mobile transport trays, expedited cargo, and permit/overweight services; and supply chain services. It serves automotive, coal, fertilizers, temperature controlled cargo, forest products, dimensional, grain, metal and minerals, petroleum and chemicals, consumer goods, and third party logistics applications. The company operates a rail network of approximately 20,000 route-miles of track and shipping spanning. Canadian National Railway Company was incorporated in 1919 and is headquartered in Montreal, Canada.

About Grupo Traxión

Grupo Traxión, S.A.B. de C.V. operates as a mobility and logistics company in Mexico. It operates through Cargo, Logistics Solution, and Personnel and Student Transportation segments. The company offers dry and refrigerated boxes, hoppers, platforms, mid-range units, intermodal and multimodal, imports and exports, domestic distribution, cross-borders, ports, cross docks, and door-to-door freight services; logistics integration services, such as land management, control tower, networks consultancy, eCommerce, domestic trips, imports and exports, consolidated, specialized, storage, cold chain, in-house, cargo, door-to-door, land, air, and maritime services; and warehousing services, including dedicated warehousing, shared warehouses, platform crossings, inventory management, product unloading and loading, finishing and raw materials, exports shipping, inverse logistics, automated and aleatory systems, and collection by radiofrequency and/or voice, as well as copacking and production for exports, such as labeling, product assembling, promotional materials, thermal-forming, and sealing. It also provides warehouse management, transport management, and control tower systems; parcel and courier, home collection and delivery, documents return, parcel tracking, domestic and cross-border shipments, guarantees and shipping insurance, inventory control, and packing and packaging services; and personnel and student transportation services. In addition, the company offers special services, such as rental of buses and vans for events; national and international moving services; railway logistics coordination services; advertising solutions; technological mobility solutions comprising digital platforms and mobile applications. The company was formerly known as Fondo de Transporte México, S.A.P.I. de C.V. and changed its name to Grupo Traxión, S.A.B. de C.V. in September 2017. Grupo Traxión, S.A.B. de C.V. was incorporated in 2011 and is based in Mexico City, Mexico.