Q: Hi 5i,
I want to add a rail position. What’s your thesis on CNR vs CP?
Thank you!
I want to add a rail position. What’s your thesis on CNR vs CP?
Thank you!
5i Research Answer:
We would side with CNR marginally over CP. CNR has a better free cash flow yield at 3.9% vs. CP at 2.4%, as well as a cheaper valuation (19X forward earnings vs. 22.9X, respectively). CNR pays a higher yield (2.1% vs. CP at 0.8%). We like both names, but we would give CNR the slight edge today.