Can you speak to the management of each company? Which is the better long-term hold?
It is always easy to debate capital allocation as some moves can take years to play out. CNR right now has a better dividend growth record than CP over five years even with its buybacks. CP added debt to buy Kansas City and that move could be criticized also. Still, CP's team, led by CEO Keith Creel since 2017, earns praise for handling the Kansas City Southern acquisition, improving leverage toward 3.0x, and driving network efficiency. Credit agencies cite "experienced management" and "solid operational execution." This contributed to better long-term returns. The CEO of CNR has been in place for less than four years. CNR has reduced its share count by nearly 150 million shares since 2016. CP's count has gone up by 160 million. Even so, CNR continues to have a less-leveraged balance sheet. We like both but would continue to see the lower valuation and higher dividend on CNR as more attractive today.