Waste Connections, Inc. (WCN.TO) (TSE:WCN) and Canadian Pacific Railway (TSE:CP) are both large-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
Dividends
Waste Connections, Inc. (WCN.TO) pays an annual dividend of C$0.76 per share and has a dividend yield of 0.6%. Canadian Pacific Railway pays an annual dividend of C$3.56 per share and has a dividend yield of 0.8%. Waste Connections, Inc. (WCN.TO) pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian Pacific Railway pays out 19.8% of its earnings in the form of a dividend. Canadian Pacific Railway is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of current ratings for Waste Connections, Inc. (WCN.TO) and Canadian Pacific Railway, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Waste Connections, Inc. (WCN.TO) | 0 | 1 | 2 | 0 | 2.67 |
Canadian Pacific Railway | 0 | 3 | 4 | 0 | 2.57 |
Waste Connections, Inc. (WCN.TO) presently has a consensus price target of C$133.00, suggesting a potential upside of 7.77%. Canadian Pacific Railway has a consensus price target of C$461.64, suggesting a potential upside of 0.90%. Given Waste Connections, Inc. (WCN.TO)'s stronger consensus rating and higher possible upside, equities research analysts clearly believe Waste Connections, Inc. (WCN.TO) is more favorable than Canadian Pacific Railway.
Profitability
This table compares Waste Connections, Inc. (WCN.TO) and Canadian Pacific Railway's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Waste Connections, Inc. (WCN.TO) | N/A | N/A | N/A |
Canadian Pacific Railway | N/A | N/A | N/A |
Earnings & Valuation
This table compares Waste Connections, Inc. (WCN.TO) and Canadian Pacific Railway's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Waste Connections, Inc. (WCN.TO) | C$5.45 billion | 5.94 | C$204.02 million | C$0.78 | 158.62 |
Canadian Pacific Railway | C$7.71 billion | 7.91 | C$2.40 billion | C$17.97 | 25.46 |
Canadian Pacific Railway has higher revenue and earnings than Waste Connections, Inc. (WCN.TO). Canadian Pacific Railway is trading at a lower price-to-earnings ratio than Waste Connections, Inc. (WCN.TO), indicating that it is currently the more affordable of the two stocks.
Summary
Canadian Pacific Railway beats Waste Connections, Inc. (WCN.TO) on 7 of the 10 factors compared between the two stocks.