Getlink (OTCMKTS:GRPTF) and Canadian Pacific Kansas City (NYSE:CP) Critical Comparison

Canadian Pacific Kansas City (NYSE:CP) and Getlink (OTCMKTS:GRPTF) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Canadian Pacific Kansas City and Getlink, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Pacific Kansas City	0	3	11	1	2.87
Getlink	0	2	2	0	2.50

Canadian Pacific Kansas City presently has a consensus target price of $108.60, suggesting a potential upside of 18.53%. Given Canadian Pacific Kansas City’s stronger consensus rating and higher possible upside, research analysts clearly believe Canadian Pacific Kansas City is more favorable than Getlink.

Institutional & Insider Ownership

72.2% of Canadian Pacific Kansas City shares are owned by institutional investors. Comparatively, 33.1% of Getlink shares are owned by institutional investors. 0.0% of Canadian Pacific Kansas City shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canadian Pacific Kansas City	25.02%	9.02%	4.86%
Getlink	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Pacific Kansas City	$10.79 billion	7.49	$2.96 billion	$3.11	29.46
Getlink	N/A	N/A	N/A	$0.20	102.82

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

Dividends

Canadian Pacific Kansas City pays an annual dividend of $0.78 per share and has a dividend yield of 0.9%. Getlink pays an annual dividend of $0.15 per share and has a dividend yield of 0.7%. Canadian Pacific Kansas City pays out 25.1% of its earnings in the form of a dividend. Getlink pays out 74.6% 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. Canadian Pacific Kansas City is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Canadian Pacific Kansas City beats Getlink on 13 of the 14 factors compared between the two stocks.

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.

About Getlink

Getlink SE engages in the design, finance, construction, and operation of fixed link infrastructure and transport system in France. The company operates through Eurotunnel, Europorte, and ElecLink segments. The Eurotunnel segment operates three tunnels of a length of approximately 50 kilometres each under the English Channel, as well as two terminals at Folkestone in the United Kingdom and the Coquelles in France. It also provides passenger shuttle services for the transport of trucks, cars, motor homes, coaches, and other vehicles. In addition, this segment manages high-speed passenger trains and rail freights, as well as fixed equipment and related installations. The Europorte segment offers a range of integrated rail freight services, including national and international haulage, local services for secondary lines, individual junction management, infrastructure maintenance, and wagon loading and unloading services. The ElecLink segment engages in the construction and operation of a 1 gigawatt electricity interconnector between the France and Great Britain. Getlink SE also engages in third-party retail, telecommunication cables, training activity, and property businesses, as well as the sale of travel insurance products. The company was formerly known as Groupe Eurotunnel S.E. and changed its name to Getlink SE in April 2018. Getlink SE was founded in 1986 and is based in Paris, France.