China Railway Group (OTCMKTS:CRWOF) vs. Aecon Group (OTCMKTS:AEGXF) Head-To-Head Contrast

China Railway Group (OTCMKTS:CRWOF) and Aecon Group (OTCMKTS:AEGXF) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings for China Railway Group and Aecon Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Railway Group	0	0	0	0	0.00
Aecon Group	0	2	3	0	2.60

Aecon Group has a consensus target price of $23.00, suggesting a potential upside of 1.41%. Given Aecon Group’s stronger consensus rating and higher possible upside, analysts plainly believe Aecon Group is more favorable than China Railway Group.

Earnings and Valuation

This table compares China Railway Group and Aecon Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Railway Group	N/A	N/A	N/A	$0.48	1.03
Aecon Group	N/A	N/A	N/A	$0.37	62.07

China Railway Group is trading at a lower price-to-earnings ratio than Aecon Group, indicating that it is currently the more affordable of the two stocks.

Dividends

China Railway Group pays an annual dividend of $0.07 per share and has a dividend yield of 13.3%. Aecon Group pays an annual dividend of $0.35 per share and has a dividend yield of 1.5%. China Railway Group pays out 13.8% of its earnings in the form of a dividend. Aecon Group pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Railway Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

2.8% of China Railway Group shares are held by institutional investors. Comparatively, 45.8% of Aecon Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares China Railway Group and Aecon Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Railway Group	N/A	N/A	N/A
Aecon Group	N/A	N/A	N/A

Summary

Aecon Group beats China Railway Group on 5 of the 8 factors compared between the two stocks.

About China Railway Group

China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People's Republic of China, Hong Kong, and Macau. Its Infrastructure Construction segment constructs railways, highways, bridges, tunnels, metropolitan railways, buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works. The company's Survey, Design and Consulting Services segment provides survey, design, consulting, research and development, feasibility study, and compliance certification services to infrastructure construction projects. Its Engineering Equipment and Component Manufacturing segment designs, researches and develops, manufactures, and sells turnouts, bridge steel structures, other railway-related equipment, engineering equipment, component manufacturing, and materials. The company's Property Development segment develops, sells, and manages residential and commercial properties. Its Other Businesses segment is involved in mining, financial, and operation service concession arrangements operation, merchandise trading, and other ancillary businesses. China Railway Group Limited was founded in 1950 and is based in Beijing, China.

About Aecon Group

Aecon Group Inc., together with its subsidiaries, provide construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally. It operates through two segments, Construction and Concessions. The Construction segment focuses on civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure, and conventional industrial infrastructure market sectors. The Concessions segment engages in the development, building, financing, and operation of construction projects by way of public-private partnership contract structures. This segment also provides development of domestic international public-private partnership; private finance solution; developing strategic partnerships; leading and/or participating in development teams; and operations and maintenance of infrastructure assets services. The company was formerly known as Prefac Concrete Co. Ltd. and changed its name to Aecon Group Inc. in June 2001. Aecon Group Inc. was founded in 1867 and is headquartered in Toronto, Canada.