Quality Distribution (NASDAQ: QLTY) and Canadian Pacific Railway Limited (NYSE:CP) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares Quality Distribution and Canadian Pacific Railway Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quality Distribution 0.95% N/A 2.09%
Canadian Pacific Railway Limited 25.49% 33.06% 8.38%

Institutional and Insider Ownership

65.9% of Canadian Pacific Railway Limited shares are owned by institutional investors. 0.0% of Canadian Pacific Railway Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Quality Distribution and Canadian Pacific Railway Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quality Distribution 0 0 0 0 N/A
Canadian Pacific Railway Limited 0 3 19 0 2.86

Canadian Pacific Railway Limited has a consensus price target of $187.72, indicating a potential upside of 16.86%. Given Canadian Pacific Railway Limited’s higher probable upside, analysts clearly believe Canadian Pacific Railway Limited is more favorable than Quality Distribution.

Dividends

Canadian Pacific Railway Limited pays an annual dividend of $1.67 per share and has a dividend yield of 1.0%. Quality Distribution does not pay a dividend. Canadian Pacific Railway Limited pays out 19.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Quality Distribution and Canadian Pacific Railway Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quality Distribution N/A N/A N/A N/A N/A
Canadian Pacific Railway Limited $5.08 billion 4.62 $2.61 billion $8.40 19.12

Canadian Pacific Railway Limited has higher revenue and earnings than Quality Distribution.

Summary

Canadian Pacific Railway Limited beats Quality Distribution on 9 of the 10 factors compared between the two stocks.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

About Canadian Pacific Railway Limited

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. The Company operates through rail transportation segment. The Company’s transports bulk commodities, merchandise freight, and intermodal traffic over a network of approximately 12,400 miles. Its railway feeds directly into the United States heartland from the east and west coasts. Its Bulk commodities include grain, coal, potash, fertilizers and sulfur. Its Merchandise freight consists of finished vehicles and machinery, as well as forest and industrial and consumer products. Its Intermodal traffic consists of retail goods in overseas containers that can be transported by train, ship and truck and in domestic containers and trailers that can be moved by train and truck. Its subsidiaries include Canadian Pacific Railway Company, Soo Line Railroad Company, Delaware and Hudson Railway Company, Inc. and Mount Stephen Properties Inc.

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