Canadian National Railway (NYSE:CNI) and Uber Technologies (NYSE:UBER) Financial Contrast

Uber Technologies (NYSE:UBER) and Canadian National Railway (NYSE:CNI) are both large-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Profitability

This table compares Uber Technologies and Canadian National Railway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	17.34%	43.36%	19.15%
Canadian National Railway	26.92%	22.22%	8.12%

Insider and Institutional Ownership

80.2% of Uber Technologies shares are held by institutional investors. Comparatively, 80.7% of Canadian National Railway shares are held by institutional investors. 3.8% of Uber Technologies shares are held by company insiders. Comparatively, 2.4% of Canadian National Railway shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Uber Technologies and Canadian National Railway”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$55.23 billion	2.60	$10.05 billion	$4.55	15.46
Canadian National Railway	$17.76 billion	4.13	$3.38 billion	$5.64	21.61

Uber Technologies has higher revenue and earnings than Canadian National Railway. Uber Technologies is trading at a lower price-to-earnings ratio than Canadian National Railway, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Uber Technologies has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Canadian National Railway has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Uber Technologies and Canadian National Railway, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	3	4	34	2	2.81
Canadian National Railway	0	9	9	0	2.50

Uber Technologies currently has a consensus price target of $103.11, suggesting a potential upside of 46.54%. Canadian National Railway has a consensus price target of $137.49, suggesting a potential upside of 12.83%. Given Uber Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe Uber Technologies is more favorable than Canadian National Railway.

Summary

Uber Technologies beats Canadian National Railway on 10 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About Canadian National Railway

Canadian National Railway Company, together with its subsidiaries, engages in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. The company provides rail services, which include equipment, custom brokerage services, transloading and distribution, business development and real estate, and private car storage services; and intermodal services, such as temperature controlled cargo, port partnerships, and logistics parks. It offers trucking services, such as door-to-door services, import and export dray, interline services, and specialized services, comprising flatbed trucks, on-deck mobile transport trays, expedited cargo, and permit/overweight services; and supply chain services. It serves automotive, coal, fertilizers, temperature controlled cargo, forest products, dimensional, grain, metal and minerals, petroleum and chemicals, consumer goods, and third party logistics applications. The company operates a rail network of approximately 20,000 route-miles of track and shipping spanning. Canadian National Railway Company was incorporated in 1919 and is headquartered in Montreal, Canada.