Aurizon (OTCMKTS:QRNNF) and Kansas City Southern (NYSE:KSU) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
Insider & Institutional Ownership
87.7% of Kansas City Southern shares are held by institutional investors. 0.7% of Kansas City Southern shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Kansas City Southern pays an annual dividend of $1.44 per share and has a dividend yield of 1.3%. Aurizon does not pay a dividend. Kansas City Southern pays out 24.1% of its earnings in the form of a dividend. Kansas City Southern has raised its dividend for 5 consecutive years.
This is a breakdown of recent ratings and price targets for Aurizon and Kansas City Southern, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kansas City Southern||0||2||10||1||2.92|
Kansas City Southern has a consensus target price of $123.92, suggesting a potential upside of 8.23%. Given Kansas City Southern’s stronger consensus rating and higher probable upside, analysts plainly believe Kansas City Southern is more favorable than Aurizon.
Valuation & Earnings
This table compares Aurizon and Kansas City Southern’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kansas City Southern||$2.71 billion||4.26||$627.40 million||$5.97||19.18|
Kansas City Southern has higher revenue and earnings than Aurizon.
This table compares Aurizon and Kansas City Southern’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kansas City Southern||23.12%||12.11%||6.54%|
Kansas City Southern beats Aurizon on 12 of the 13 factors compared between the two stocks.
Aurizon Company Profile
Aurizon Holdings Limited, through its subsidiaries, operates an integrated heavy haul freight railway operator in Australia. It operates through Network, Coal, Bulk, and Other segments. The company transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. It also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. In addition, the company transports bulk freight for miners, primary producers, and the manufacturing industry. Further, it is involved in the general and containerized freight businesses, as well as provision of rail-based intermodal services. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. Aurizon Holdings Limited is headquartered in Fortitude Valley, Australia.
Kansas City Southern Company Profile
Kansas City Southern, a transportation holding company, provides domestic and international rail transportation services in North America. The company serves a ten-state region in the midwest and southeast regions of the United States and has the shortest north/south rail route between Kansas City, Missouri, and ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas. It operates a commercial corridor of the Mexican railroad system and has its direct rail passageway between Mexico City and Laredo, Texas. The company provides rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas; and controls and operates the southern half of the rail bridge at Laredo, Texas, as well as the northern half of this bridge. Kansas City Southern also provides rail access to the port of Lazaro Cardenas on the Pacific Ocean; and owns a 157-mile rail line extending from Laredo, Texas to the port city of Corpus Christi, Texas. Its rail network comprises approximately 6,700 route miles. The company serves the chemical and petroleum, industrial and consumer products, agriculture and minerals, energy, intermodal, and automotive markets. Kansas City Southern was founded in 1887 and is headquartered in Kansas City, Missouri.
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