Analyzing Aurizon (QRNNF) and Its Rivals

Aurizon (OTCMKTS:QRNNF) is one of 102 publicly-traded companies in the “Ground Transportation” industry, but how does it contrast to its competitors? We will compare Aurizon to similar businesses based on the strength of its risk, profitability, analyst recommendations, institutional ownership, valuation, dividends and earnings.

Institutional & Insider Ownership

13.3% of Aurizon shares are owned by institutional investors. Comparatively, 60.6% of shares of all “Ground Transportation” companies are owned by institutional investors. 15.5% of shares of all “Ground Transportation” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Aurizon and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aurizon	N/A	N/A	N/A
Aurizon Competitors	5.39%	9.39%	3.79%

Valuation and Earnings

This table compares Aurizon and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aurizon	N/A	N/A	26.27
Aurizon Competitors	$9.00 billion	$895.12 million	52.11

Aurizon’s competitors have higher revenue and earnings than Aurizon. Aurizon is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Aurizon pays an annual dividend of $0.06 per share and has a dividend yield of 2.1%. Aurizon pays out 54.2% of its earnings in the form of a dividend. As a group, “Ground Transportation” companies pay a dividend yield of 1.4% and pay out 27.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for Aurizon and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aurizon	0	1	0	0	2.00
Aurizon Competitors	1335	6322	8406	251	2.46

Aurizon presently has a consensus price target of $3.80, suggesting a potential upside of 22.58%. As a group, “Ground Transportation” companies have a potential upside of 10.81%. Given Aurizon’s higher probable upside, research analysts clearly believe Aurizon is more favorable than its competitors.

Summary

Aurizon competitors beat Aurizon on 11 of the 13 factors compared.

About Aurizon

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It 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. The company 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. It serves miners, primary producers, and the industry. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. The company was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.