Canadian Pacific Kansas City Limited (CP) vs Trinity Industries, Inc. (TRN)

Canadian Pacific Kansas City Limited and Trinity Industries, Inc. are both Railroads companies. Canadian Pacific Kansas City Limited is the larger, with a market value of $76.8B against $2.2B — 34.6× the size. Trinity Industries, Inc. trades at the lower P/E: 6.6× against 27.9×. Canadian Pacific Kansas City Limited grew revenue faster over the last twelve months: 4.57% against −19.0%. Canadian Pacific Kansas City Limited has the higher net margin (25.0% vs 16.6%) and the lower return on invested capital (4.91% vs 7.59%). Both pay a dividend; Trinity Industries, Inc. yields more (4.08% vs 0.68%). Across the 22 metrics below, Trinity Industries, Inc. leads on 12 and Canadian Pacific Kansas City Limited on 10.

Valuation

Metric CP TRN Railroads median
P/E 27.87 6.57 26.88
P/S 6.89 1.09 2.58
P/B 2.24 1.94 4.33
Price to free cash flow 43.80 n/m 26.65
EV/EBITDA 17.04 6.91 13.50
EV/Sales 8.50 3.57 4.56
Earnings yield 3.59% 15.23% 3.59%
Free cash flow yield 2.28% (15.20%) 3.41%

Profitability

Metric CP TRN Railroads median
Gross margin 69.79% 26.24% 30.61%
Operating margin 36.73% 36.96% 24.29%
Net margin 24.99% 16.62% 10.59%
Free cash flow margin 15.74% (16.53%) 8.43%
Return on equity 8.16% 28.24% 11.49%
Return on assets 4.43% 3.98% 3.98%
Return on invested capital 4.91% 7.59% 7.59%

Growth

Metric CP TRN Railroads median
Revenue growth (TTM) 4.57% (18.95%) 2.97%
EPS growth (last fiscal year) 11.38% 85.98% —
Revenue growth, 5-year CAGR 13.40% 4.27% 5.27%
Net income growth, 5-year CAGR 10.19% 0.00% 0.88%

Health

Metric CP TRN Railroads median
Debt to equity 0.53 4.56 0.58
Current ratio 0.59 1.89 1.03
Net debt to EBITDA 3.02 5.49 2.71

Dividend

Metric CP TRN Railroads median
Dividend yield 0.68% 4.08% 2.17%
Payout ratio — 0.88 0.19

Size

Metric CP TRN Railroads median
Market cap 76.76b 2.22b 2.22b

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