Grab (NASDAQ:GRAB) vs. Canadian Pacific Kansas City (NYSE:CP) Critical Contrast

Grab (NASDAQ:GRAB) and Canadian Pacific Kansas City (NYSE:CP) are both large-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares Grab and Canadian Pacific Kansas City’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grab	15.97%	8.83%	4.92%
Canadian Pacific Kansas City	25.02%	9.02%	4.86%

Analyst Recommendations

This is a summary of recent ratings and price targets for Grab and Canadian Pacific Kansas City, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grab	1	0	9	2	3.00
Canadian Pacific Kansas City	0	3	12	2	2.94

Grab currently has a consensus target price of $6.11, suggesting a potential upside of 107.65%. Canadian Pacific Kansas City has a consensus target price of $111.83, suggesting a potential upside of 28.04%. Given Grab’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Grab is more favorable than Canadian Pacific Kansas City.

Earnings & Valuation

This table compares Grab and Canadian Pacific Kansas City”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grab	$3.37 billion	3.57	$268.00 million	$0.06	49.00
Canadian Pacific Kansas City	$10.79 billion	7.08	$2.96 billion	$3.11	28.08

Canadian Pacific Kansas City has higher revenue and earnings than Grab. Canadian Pacific Kansas City is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Grab has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Canadian Pacific Kansas City has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

55.5% of Grab shares are owned by institutional investors. Comparatively, 72.2% of Canadian Pacific Kansas City shares are owned by institutional investors. 3.6% of Grab shares are owned by company insiders. Comparatively, 0.0% of Canadian Pacific Kansas City shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Canadian Pacific Kansas City beats Grab on 9 of the 14 factors compared between the two stocks.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers. It also provides rail and intermodal transportation services over a network of approximately 20,000 miles serving business centres. The company was formerly known as Canadian Pacific Railway Limited and changed its name to Canadian Pacific Kansas City Limited in April 2023. Canadian Pacific Kansas City Limited was incorporated in 1881 and is headquartered in Calgary, Canada.