Critical Review: Canadian National Railway (NYSE:CNI) vs. Bollore (OTCMKTS:BOIVF)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian National Railway	$17.30 billion	3.60	$3.38 billion	$5.43	18.68
Bollore	$3.39 billion	4.70	$1.97 billion	N/A	N/A

Canadian National Railway has higher revenue and earnings than Bollore.

Insider & Institutional Ownership

80.7% of Canadian National Railway shares are owned by institutional investors. 2.4% of Canadian National Railway shares are owned by company insiders. 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 Canadian National Railway and Bollore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian National Railway	27.28%	22.14%	8.26%
Bollore	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for Canadian National Railway and Bollore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian National Railway	0	10	10	0	2.50
Bollore	0	0	0	0	0.00

Canadian National Railway presently has a consensus target price of $118.91, indicating a potential upside of 17.26%. Given Canadian National Railway’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Canadian National Railway is more favorable than Bollore.

Risk and Volatility

Canadian National Railway has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Bollore has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Summary

Canadian National Railway beats Bollore on 11 of the 12 factors compared between the two stocks.

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.

About Bollore

Bolloré SE engages in the transportation and logistics, communications, and industry businesses in France, rest of Europe, the Americas, Asia, Oceania, and Africa. It operates through Bolloré Logistics, Bolloré Energy, Communications, and Industry segments. The company offers freight forwarding, railroad, and port services; and distributes oil products. It also provides advertising, and communication consulting services; owns and publishes Cnews, a French daily newspaper; provides ticketing and venue services; acts as a pay-TV operator; and operates Mac-Mahon cinema theaters. In addition, it develops batteries based on lithium metal polymer technology for use in electric buses and energy storage solutions, as well as in stationary applications; and polypropylene films for capacitors and electrical components. Further, the company integrates identification, tracking, and mobility solutions for retail, transport, and logistics; provides equipment for pedestrian and vehicle access control; and electric shuttles solutions. The company was founded in 1822 and is based in Puteaux, France. Bolloré SE is a subsidiary of Financière de l'Odet SE.