Genesee & Wyoming (NYSE: GWR) and Con-way (NYSE:CNW) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

96.2% of Genesee & Wyoming shares are held by institutional investors. 3.8% of Genesee & Wyoming shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Genesee & Wyoming and Con-way, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genesee & Wyoming 0 5 3 0 2.38
Con-way 0 0 0 0 N/A

Genesee & Wyoming presently has a consensus target price of $75.60, indicating a potential upside of 14.23%. Given Genesee & Wyoming’s higher probable upside, research analysts plainly believe Genesee & Wyoming is more favorable than Con-way.

Profitability

This table compares Genesee & Wyoming and Con-way’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genesee & Wyoming 6.64% 6.32% 2.63%
Con-way 3.09% 14.75% 5.26%

Earnings & Valuation

This table compares Genesee & Wyoming and Con-way’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Genesee & Wyoming $2.08 billion 1.98 $615.42 million $2.29 28.90
Con-way N/A N/A N/A N/A N/A

Genesee & Wyoming has higher revenue and earnings than Con-way.

Summary

Genesee & Wyoming beats Con-way on 6 of the 8 factors compared between the two stocks.

About Genesee & Wyoming

Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).

About Con-way

Con-way Inc. (Con-way) provides transportation, logistics and supply-chain management services for a range of manufacturing, industrial and retail customers. The Company’s business units operate in regional, inter-regional and transcontinental less-than-truckload and full-truckload freight transportation, multimodal freight brokerage and trailer manufacturing. The Company operates in three segments: Freight, Logistics and Truckload. The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services. The Logistics segment consists of the operating results of the Menlo Logistics (Menlo) business unit, which develops contract-logistics solutions. The Truckload segment consists of the operating results of the Con-way Truckload business unit.

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