Head to Head Survey: Canadian National Railway (NYSE:CNI) vs. Marten Transport (NASDAQ:MRTN)

Canadian National Railway (NYSE:CNI) and Marten Transport (NASDAQ:MRTN) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Risk and Volatility

Canadian National Railway has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Marten Transport has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian National Railway	$12.38 billion	6.23	$3.38 billion	$5.64	22.59
Marten Transport	$883.65 million	1.41	$17.44 million	$0.17	89.51

Canadian National Railway has higher revenue and earnings than Marten Transport. Canadian National Railway is trading at a lower price-to-earnings ratio than Marten Transport, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Canadian National Railway and Marten Transport, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian National Railway	0	9	8	0	2.47
Marten Transport	0	3	0	1	2.50

Canadian National Railway currently has a consensus price target of $137.40, indicating a potential upside of 7.84%. Marten Transport has a consensus price target of $16.00, indicating a potential upside of 5.15%. Given Canadian National Railway’s higher probable upside, analysts plainly believe Canadian National Railway is more favorable than Marten Transport.

Dividends

Canadian National Railway pays an annual dividend of $2.67 per share and has a dividend yield of 2.1%. Marten Transport pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Canadian National Railway pays out 47.3% of its earnings in the form of a dividend. Marten Transport pays out 141.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian National Railway has increased its dividend for 3 consecutive years. Canadian National Railway is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

80.7% of Canadian National Railway shares are owned by institutional investors. Comparatively, 69.1% of Marten Transport shares are owned by institutional investors. 2.4% of Canadian National Railway shares are owned by insiders. Comparatively, 22.6% of Marten Transport 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 National Railway and Marten Transport’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian National Railway	26.92%	22.22%	8.12%
Marten Transport	1.47%	1.65%	1.32%

Summary

Canadian National Railway beats Marten Transport on 13 of the 17 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 Marten Transport

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United State, Mexico, and Canada. The company operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage. The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment, as well as dry freight; and regional short-haul and medium-to-long-haul full-load transportation services. The Dedicated segment offers customized transportation solutions for individual customers' requirements using temperature-controlled trailers, dry vans, and other specialized equipment. The Intermodal segment transports customers' freight utilizing its refrigerated containers and temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers. The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for customers in temperature-controlled trailers and dry vans. As of December 31, 2023, the company operated a fleet of 3,349 tractors, that included 3,255 company-owned tractors and 94 tractors supplied by independent contractors. Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.