CHINA RWY CONST/ADR (OTCMKTS:CWYCY) and Greenbrier Companies (NYSE:GBX) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CHINA RWY CONST/ADR and Greenbrier Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CHINA RWY CONST/ADR 0 0 0 0 N/A
Greenbrier Companies 1 1 2 0 2.25

Greenbrier Companies has a consensus price target of $26.20, suggesting a potential upside of 1.83%. Given Greenbrier Companies’ higher probable upside, analysts plainly believe Greenbrier Companies is more favorable than CHINA RWY CONST/ADR.

Dividends

CHINA RWY CONST/ADR pays an annual dividend of $0.22 per share and has a dividend yield of 2.6%. Greenbrier Companies pays an annual dividend of $1.08 per share and has a dividend yield of 4.2%. Greenbrier Companies pays out 37.6% of its earnings in the form of a dividend. Greenbrier Companies has raised its dividend for 5 consecutive years. Greenbrier Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

88.8% of Greenbrier Companies shares are held by institutional investors. 2.3% of Greenbrier Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

CHINA RWY CONST/ADR has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares CHINA RWY CONST/ADR and Greenbrier Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CHINA RWY CONST/ADR 2.36% 7.26% 1.66%
Greenbrier Companies 2.74% 7.06% 3.41%

Earnings and Valuation

This table compares CHINA RWY CONST/ADR and Greenbrier Companies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CHINA RWY CONST/ADR $120.17 billion 0.10 $2.92 billion N/A N/A
Greenbrier Companies $3.03 billion 0.28 $71.08 million $2.87 8.97

CHINA RWY CONST/ADR has higher revenue and earnings than Greenbrier Companies.

Summary

Greenbrier Companies beats CHINA RWY CONST/ADR on 11 of the 15 factors compared between the two stocks.

About CHINA RWY CONST/ADR

China Railway Construction Corporation Limited, together with its subsidiaries, engages in the construction of infrastructure projects in Mainland China and internationally. The company operates through five segments: Construction Operations; Survey, Design and Consultancy Operations; Manufacturing Operations; Real Estate Operations; and Other Business Operations. It undertake projects, such as railways, highways, urban rail transits, water conservancy and hydropower, housing construction, municipal engineering, bridges, tunnels, airports, and wharfs. The company is also involved in the provision of survey, design, and consultation services for railway, urban rail transit, highway, municipal engineering, industrial and civil building, and water transport engineering. In addition, it manufactures large railway track maintenance machinery, excavating machinery, rail equipment, special construction equipment, bridge construction equipment, railway electric construction equipment and materials, lifting equipment, and steel structures. Further, the company is involved in the real estate development; purchase and sale of goods and materials; and provision of logistics, financial agency, insurance, and asset management services. The company was founded in 2007 and is headquartered in Beijing, the People's Republic of China. China Railway Construction Corporation Limited is a subsidiary of China Railway Construction Corporation Group.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. The company operates in three segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. The Manufacturing segment offers double-stack intermodal railcars; tank cars; auto-max and multi-max products for the transportation of light vehicles; conventional railcars, such as covered hopper cars, boxcars, center partition cars, bulkhead flat cars, and solid waste service flat cars; pressurized tank cars, non-pressurized tank cars, coil cars, coal cars, gondolas, sliding wall cars, and automobile transporter cars; and marine vessels, including conventional deck barges, double-hull tank barges, railcar/deck barges, barges for aggregates, and other heavy industrial products and dump barges. The Wheels & Parts segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and axle downsizing; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts, as well as produces roofs, doors, and associated parts for boxcars. The Leasing & Services segment offers operating leases and ‘by the mile' leases for a fleet of approximately 8,100 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management, administration, and railcar remarketing. This segment owns or provides management services to a fleet of approximately 357,000 railcars for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. The Greenbrier Companies, Inc. serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.

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