Central Japan Railway (OTCMKTS:CJPRY) vs. Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) Critical Comparison

Central Japan Railway (OTCMKTS:CJPRYGet Rating) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYYGet Rating) are both large-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Risk and Volatility

Central Japan Railway has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Central Japan Railway and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central Japan Railway -11.83% -2.93% -1.12%
Nippon Yusen Kabushiki Kaisha 26.96% 67.68% 23.90%

Earnings and Valuation

This table compares Central Japan Railway and Nippon Yusen Kabushiki Kaisha’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Central Japan Railway $7.77 billion 3.38 -$1.89 billion ($0.49) -25.98
Nippon Yusen Kabushiki Kaisha $15.17 billion 0.81 $1.26 billion $5.74 2.52

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Central Japan Railway. Central Japan Railway is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.0% of Nippon Yusen Kabushiki Kaisha shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Central Japan Railway pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. Central Japan Railway pays out -16.3% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 9.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Central Japan Railway and Nippon Yusen Kabushiki Kaisha, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central Japan Railway 0 1 0 0 2.00
Nippon Yusen Kabushiki Kaisha 1 0 1 0 2.00

Summary

Nippon Yusen Kabushiki Kaisha beats Central Japan Railway on 11 of the 13 factors compared between the two stocks.

Central Japan Railway Company Profile (Get Rating)

Central Japan Railway Company engages in the railway and related businesses in Japan. The company operates through Transportation, Merchandise and Other, Real Estate, and Other segments. It primarily operates Tokaido Shinkansen, a transportation artery that links metropolitan areas of Tokyo, Nagoya, and Osaka, as well as operates a network of 12 conventional lines centered on the Nagoya and Shizuoka areas. The company also provides bus, logistics, travel agency, advertising, linen supply, track maintenance, construction and construction consulting, and contracted accounting and financial services; and manufactures and maintains railway rolling stock and machinery. In addition, it is involved in the operation of a department store; wholesale and retail sales business; sale of food and beverages; leasing and sale of real estate; hotel business; and development, improvement, and maintenance of computer systems. Central Japan Railway Company was founded in 1987 and is headquartered in Nagoya, Japan.

Nippon Yusen Kabushiki Kaisha Company Profile (Get Rating)

Nippon Yusen Kabushiki Kaisha provides marine, land, and air transportation services worldwide. The company offers various logistics services, including liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, which include iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, LNG, LPG, and ammonia for oil, petrochemical, and energy companies. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

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