CAI International (NYSE:CAI) and Fortress Transprtn and Infr Investrs (NYSE:FTAI) are both small-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.
Volatility and Risk
CAI International has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Fortress Transprtn and Infr Investrs has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for CAI International and Fortress Transprtn and Infr Investrs, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortress Transprtn and Infr Investrs||0||0||1||0||3.00|
CAI International presently has a consensus target price of $29.75, suggesting a potential upside of 34.07%. Fortress Transprtn and Infr Investrs has a consensus target price of $19.00, suggesting a potential upside of 12.23%. Given CAI International’s higher probable upside, equities analysts plainly believe CAI International is more favorable than Fortress Transprtn and Infr Investrs.
This table compares CAI International and Fortress Transprtn and Infr Investrs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortress Transprtn and Infr Investrs||1.55%||0.88%||0.40%|
Earnings & Valuation
This table compares CAI International and Fortress Transprtn and Infr Investrs’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CAI International||$432.10 million||0.96||$78.60 million||$3.64||6.10|
|Fortress Transprtn and Infr Investrs||$379.88 million||3.76||$5.88 million||$0.11||153.91|
CAI International has higher revenue and earnings than Fortress Transprtn and Infr Investrs. CAI International is trading at a lower price-to-earnings ratio than Fortress Transprtn and Infr Investrs, indicating that it is currently the more affordable of the two stocks.
Fortress Transprtn and Infr Investrs pays an annual dividend of $1.32 per share and has a dividend yield of 7.8%. CAI International does not pay a dividend. Fortress Transprtn and Infr Investrs pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
86.4% of CAI International shares are owned by institutional investors. Comparatively, 32.3% of Fortress Transprtn and Infr Investrs shares are owned by institutional investors. 13.8% of CAI International shares are owned by company insiders. Comparatively, 0.9% of Fortress Transprtn and Infr Investrs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
CAI International beats Fortress Transprtn and Infr Investrs on 12 of the 16 factors compared between the two stocks.
About CAI International
CAI International, Inc. operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment. The company leases its container equipment to lessees under long-term, short-term, and finance leases. It also sells containers; and provides container management services to third-party investors, as well as sells used containers. In addition, the company leases railcars consisting of box cars for paper and forest products; covered hoppers for grain, cement, sand, plastic pallets, and other industrial products; general purpose tank cars that are used to transport food-grade, and other liquid and gaseous commodities; gondolas for coal and steel; and general service flat cars. Further, it offers domestic and international logistics services, including intermodal, truck brokerage, port drayage, warehousing, international ocean freight, and freight forwarding, as well as the arrangement and coordination of international air freight services and customs brokerage; international export and import services for full container loads, less than container loads, perishable cargo, project cargo, and airfreight; and transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility. As of December 31, 2017, the company had a container fleet comprised 1,282,739 cost equivalent units; and an owned fleet of 7,172 railcars in North America. The company was formerly known as Container Applications International, Inc. and changed its name to CAI International, Inc. in February 2007. CAI International, Inc. was founded in 1989 and is headquartered in San Francisco, California.
About Fortress Transprtn and Infr Investrs
Fortress Transportation and Infrastructure Investors LLC owns and acquires infrastructure and related equipment for the transportation of goods and people in Africa, Asia, Europe, North America, and South America. It operates in six segments: Aviation Leasing, Offshore Energy, Shipping Containers, Jefferson Terminal, Railroad, and Ports and Terminals. The Aviation Leasing segment leases aircraft and aircraft engines. As of December 31, 2017, this segment owned and managed 158 aviation assets, including 48 aircraft and 110 commercial jet engines. The Offshore Energy segment owns and leases vessels and equipment that support offshore oil and gas drilling and production activities, including an anchor handling tug supply (AHTS) vessel, a construction support vessel, and a remotely operated vehicle (ROV) support vessel. The Shipping Containers segment engages in the leasing of shipping containers on operating and finance lease basis, which comprise interests in approximately 76,000 maritime shipping containers and related equipment. The Jefferson Terminal segment develops a multi-modal crude oil and refined products handling terminal at the Port of Beaumont, Texas; and owns other assets involved in the transportation and processing of crude oil and related products. The Railroad segment owns a short line railroad that operates from Montreal to the east coast of Maine primarily for the transportation of pulp and paper, construction products, and chemicals. The Ports and Terminals segment operates Repauno, a 1,630 acre deep-water port located along the Delaware River; and Long Ridge, which is a 1,660 acre multi-modal port located along the Ohio River. The company serves operators of transportation and infrastructure networks, including airlines, offshore energy service providers, and shipping lines. Fortress Transportation and Infrastructure Investors LLC was founded in 2011 and is headquartered in New York, New York.
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