CNR vs CP - Which Is The Better Canadian Railway Stock To Buy? | Dividend Stocks In CANADA
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- เผยแพร่เมื่อ 31 พ.ค. 2024
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Today I'l share my thoughts on CNR stock and CP stock in Canada!
#stockmarket #canada #theinvestingacademy
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Timestamps:
Intro (0:00)
Performance (0:54)
Background of CNR (1:18)
Background of CP Rail (1:50)
Market Cap Breakdown (2:46)
Total Revenues (3:07)
Growth (3:49)
Dividends (5:22)
Financial Health (7:05)
Valuation (7:51)
Which is the better stock? (10:20)
Which stock would I personally pick? (11:10)
Outro (14:05)
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Which is better? CNR or CP Rail? Leave you comments down below. Thanks for watching :)
CPR only has one star on Morningstar.
Liked this video. Brookfield renewable vs northland power.
Anq.to vs fortis.
This was an excellent expansion on your previous video. Deeply appreciated.
Excellent breakdown, Brandon!
From an avid fan of your channel, thank you!
Sweet, I was looking for this! Thanks
Thank you for that comparison. It is greatly appreciated. I currently own CP and after watching this video, picking up a few of the CNR is considerable to add on a portfolio. 👍
1st one viewing this video! Been watching other of your videos this morning when this one was posted.
Really like this "comparison" format. Thx for your help. Aye ! :)
Watched and liked, thanks Brandon! Own CNR. Try not to bang on the desk as it comes through on the mic. Continue to love the content from both yourself and your dad. Excellent video and audio quality as well.
Great video! I agree, both are overvalued but what isn't in the current market!? Subscribed!
Great job Brandon! Very clear background info and research. Thanks for the perspective. I don't own either but they are on my watch list now. Love the comparison videoes, please keep them coming. Could you a video on what US index funds we should buy as Canadians?
Great comparison Brandon! 🚞
I couldn’t decide so went with both. I have worked in the rail industry for 20 years and these both hit close to home. CN also does do trucking, intermodal serves, they are a huge part of there business as small tracks have been ripped up over the years. Not to mention their connection to ports. Rail is by far the most efficient and environmentally friendly way to transport goods.
I just posted a video sharing CNR as my #1 position in my portfolio, would love your current opinion on the stock!
Really helpful comparisons 👍🏾
I Just bought 10 shares of CNR around @$132-133.
Great comparison!
Appreciate this video very much!
thank you for your info. > great video
Great video Brandon! I own CP, but would have no issue owning CN.
Would love an update on your speculative stock (FANS)! How do you deal with stocks on the decline? How do you decide what to do next?
Thank you for all the great content you’ve been putting out :)
Good review thanks
Loved it! More videos like this please!
Thank you so much!
With the stock split for CP coming soon, it wouldn't be a bad idea to invest in both. Transportation and logistics will be huge in this coming decade and both pretty much have a monopoly on rail transport in North America
I'm in on both currently. CP is getting driven up pre-split and I want to ride that.
As a previous worker of both CP and CN, I can tell you CN is by far the superior railway long term. Scooping them up big time below 140$
Thanks the advice and heads up. When is the split expected to happen?
I'm in both too. CP is killing CN for a long time. Better technicals.
Great comparison 😁
great video bruva!!! i own CNR but eventually want to own CP as well.
I just posted a video sharing CNR as my #1 position in my portfolio and also consider it a business i'll hold my whole life, would love your current opinion on the stock!
Automated vehicles are so far away from hitting the road, and that is doubly true in Canada with the winter, where the visibility of the road, signs, etc. can be massively hampered.
One of your best videos. Cant go wrong with rail stocks. I own UNP and CP.
@@HDCanadianTrainVideos Well, each have new equipment, welded rail, CTC etc and run Coast to Coast so each are what they are and that's a Class 1 so infinitely equal. Now compare a company like Genesee and Wyoming Railway (or whatever hacked enitity they are today ugh) to CP or CN...which is better...now that's a comparison lol...
Another great video. I'm curious. Where do you get these total return charts from? And thanks for your many informative posts.
Hey, Brandon, we would like to see comparison between GNR and HEO
Great video! Just a small correction... CP no longer reaches only to Quebec but right into New Brunswick. Things turned around for CP when Hunter Harrison took the reins. Keith Creel has taken over and only pushed for further improvements. This only shows what good leadership can do for a company. Right now in a changing world CP is by far the better choice. However if investing for the long term this can easily change quickly by simply changing leadership... as CP actually proved. It will be interesting to see how things play out. ☺
Nice comparison and one of my favourite videos from your channel. I picked up CNR this year when it dipped twice. I like that its a bigger company, more kms in tracks and also the share price is reasonably priced.
I just posted a video sharing CNR as my #1 position in my portfolio and also consider it a business i'll hold my whole life, would love your current opinion on the stock!
Brandon, great job. CNR has a huge bid for Kansas Southern which might be considered overpaying and CP is going to do a stock split. I wonder how share price will react to these 2 events.
Thank you very much for this video. As a newcomer to investing I found this really useful when it comes to how you choose to invest in a particular company.
Given that I'm new and with CNR and CP performing similarly (IMO) I went with getting a share of CNR as it's has a lower barrier for entry of the two.
Moreover CNR has been giving dividends and growing it for a very long time, I gravitated towards it.
Great video Brandon
I got Cp a month before there stock split and will continue you to add more
Personaly I think now is a good time to buy more CP. With the regulators rejecting voting trust the merger with CN is in real jeopardy. Which means the odds of CP winning this war just increased. CP stock just went down as there is a lot more risk taking on KCS... stock will be in the "penalty box' until the perception of greater risk decreases. We'll know more by Sept 3rd.
@@irenatz2825 I do agree with you and the prices so right now And there’s so much room for them to grow
Before watching this, its worth mentioning that they have a duopoly over Canadian railroads. I guess if you look at it that way it comes down to risk/reward. I don't know if I'd ever own either because I feel there's better growth possibilities in some cyclical stocks but I'll look at their annual reports just to see if they're worth it.
Great Video, which was needed for a long time ;)
I think this is a very good sustainable business and good stocks.
There are two important points however:
1) Very high debt which could be a problem when inflation will be higher, probably rates would go up and economy will slow down - on the efficient side both companies don't have much too cut...
2) KCS Merger - Warren Buffet says they overpaying. So I probably would go for a company that won't get the deal ... but I am still considering
thumb up.
I’ve been watching you talking about CNR, also I think CP is doing quite well, actually outperform CNR. And I don’t see the other competitors right now except they are to each other. So I like them both, hence I bought them all. 🤠
But it’s just a start, I will keep Emmy eyes on each of them, and I will keep buying and adjusting.
Thanks for the video, love it.
Great video and good timing! I just jumped into CNR on the recent "dip" myself, being relatively new to investing I've been waiting for a time where the premium on thir fair value was less... Premium. Railways move massive amounts of cargo inland at a much cheaper cost than trucking and the bulk moving of goods is gonna be using those tracks for a long time in my opinion. Good stock to buy for a lifetime.
I just posted a video sharing CNR as my #1 position in my portfolio and also consider it a business i'll hold my whole life, would love your current opinion on the stock!
I got both!
I love CNR as my number one 'hold-forever' core position in my portfolio. You also can't go wrong with CP either though. I don't look at it as which one should I buy. I own both.
I just posted a video sharing CNR as my #1 position in my portfolio and also consider it a business i'll hold my whole life, would love your current opinion on the stock!
Great video. JU
great video - it down like crazy now. good luck to all who listen to brandon
Considering you have a financial channel, and are presumably financially astute, I'm surprised you'd think that 3 1/2% is 'down like crazy'? Especially on a day that the merger with Kansas City Southern was accepted.
@@beaviswealth cp is down 79 percent
@@beaviswealth it great opportunity to buy 👍
Oh my.... It's not down 79%. They split their stock.
Hey Brandon. Great analysis ! What is your take on CP considering the new meger and the upcoming hike on interest rates?
Way I see it can't go wrong with either one, with the friction going on between Michigan and Enbridge's line5. If line5 does get shut off, they'll have to ship LNG east by rail.
good video idea
So really good to have both
The thing about electric trucks is there won’t be an infrastructure to support that for at least 10 years, and even then, like you showed with the rail maps, it’s going to be a LOT longer before we see this infrastructure in the NWT... or north BC, or north Alberta, at some of these remote mining/logging locations. Rail isn’t going anywhere in our lifetimes. People that think Tesla truck will make rail obsolete are crazy haha
So I have 100 shares of CP. I appreciate this in-depth video. I just read a headline that the deal might not go through with Kansas City southern. Do you think this will affect the stock price very much?
Ive got about 10% of my portfolio in CNR. I worked for a logistics company and noticed that they could keep raising the price and there was nothing we could do. Like Warren Buffet says about durable competitive advantage. Its still way cheaper moving goods by rail than truck or plane and that is not changing anytime soon.
Great post. Thanks for sharing.
I own both! There will be some great buying opportunities regardless of who acquires KSU.
How do you feel 8 months later?
@@mlgdickbutt8298 Great! They've held up well considering the pain the market has been going through for the past few months. CNR has had great returns since I had posted. Now that the acquisition is over I'm looking forward to see how CP performs going forward
An honest sumation
Hi great content !, do you have any analysis on UNP?, would be great to compare with CNR or CP. Btw, any update on CP when the acquisition is approaching?. Thanks !
Do you think autonomous driving shipping networks will increase, reduce, or have no effect on the railway sector?
cn was the stock that made me an investor my dad worked for them and i understood them
Thank you for this review. Would be curious on your thoughts with the announcement and CP stock merger and currently showing approx. $98. per share vs yesterday at almost $500.
Well they did a 5 for 1 stock split
What about Via there has been a resurgence of passenger demand in our Country of late.
I love CNR 💥💥🤑🤑
yes i love this sector of the market!! thanks for the video brandon!!
I bought CNR because of the recent decline, and of course because of them merging with KCS. Should be promising.
Well that comment didn’t age well
@@shaunsmith3625 I’m up 29.3% even after the Omnicron volatility. Seems my comment aged very well. 🚀 🌚
I own both. 6% of my portfolio is CNR and 3% is CP Rail. I think the fight over buying Kansas city southern may lower their prices in the short term and present a buying opportunity. Plus both these railroads are getting into the trucking industry. I see more and more CNR trucks on the highways. I will buy more of both as opportunity arises and don't an and ever selling.
Yup, intermodal is busy. CN recently got the green light for the Milton terminal.
CNR for me.
I sold 10 qpple shares and bought 11 CNR shares after I was in Gravenhurst this week. 28 CNR trains go through there a day with freight. Super impressive amount of traffic and business. Plus it dipped so I bought it on sale.
Apple products suck compared to other tech products on the market anyway. Good for you.
I own both and add a few shares at least once a year :D
They are a little expensive. I went with CN over CP in the end due to the share price. I didnt have a lot to invest and i could get more shares of CN and a bigger dividend. Was a very hard decision though. No wrong answer in my reasearch either. I didn't think either one was ever going to go on a significant "sale" in the near future.
Also currently CNR is at great position to buy
I dont have a position in any or those two companies.. however in general I would say railways tend to perform in tandem with the economies they serve. they grow in parallel to the output growth because their income I believe is correlated on the one hand with the quantity of materials transported, which is in direct relation to the economic output or GDP, and on the other hand to the $ value of these materials which are mostly energy and raw goods that are greatly influenced by inflation. There is a duonopoly in this industry no doubt.. so with inflation ramping up and an economic recovery potentially underway, it makes sense to buy a railway.. I need to do more homework to understand which one is better run, but in general I am trying to find opportunities in companies I can better understand and that will outperform the average GDP growth.. so it is not for me at this point
I personally like CNR!
What’s your thought now that cp with the merger look to buy in the morning?
Keep in mind, CNR had a really rough Jan/Feb of 2020 with blockades/protests.
They are constantly hiring.
They are both good if you can't choose one choose both.
Hey Brandon, what do u think of crypto-currency?
Buy a RR ETF cover the sector ,agree on RR bright future. A mile long train can be pulled by 2 men ,yea a robot may drive a semi in the future still no competition with RR .
You didn’t speak about the 5-1 split
Is now a good time to buy CP? Since it went down like 260...
Good businesses but it's hard to see a great return from here. Their EPS growth depends a lot on buybacks and with multiples getting stretched the buybacks won't be very effective. Paying 22x forward earnings for a highly cyclical business seems wild to me, but it depends what your required rate of return is going forward.
Yes, it may work out ok in the long run but the current price doesn't give you a margin of safety if things go wrong.
Back in April 2020, it would’ve been CP for sure, I made the mistake of buying CNR back then. But now, I feel like it’s so overvalued compared to CNR that I’m not even looking at it. Growth made the difference but for the future, I don’t see double digit % growth for that company
Own them both and holding forever. Will buy more of either if they get discounted
I just posted a video sharing CNR as my #1 position in my portfolio and also consider it a business i'll hold my whole life, would love your current opinion on the stock!
I’m buying CNR due to network & size of company.
31 years on CNR and I wouldn't have a clue which is better ( retired 2010 , have been on 2 train trips since 1 in Portugal \ 1 in Romania ) A lot more fun riding a passenger train than driving a freight . Passenger trains are less expensive in Europe ( they're crazy expensive in Canada )
I own both though I’m worried Melinda gates will sell her shares in CNR
Corpate action on CP trades suspended - what’s everyone thing ? Stock split has been rumoured for a while
IMO both of these companies attract million container contracts from China both have acquired other railroads in the past and both have had stock splits in the past! But what I watch for is cn has tried to buy other railroads and were denied for monopolization reasons as well cn has had more splits in the last 15 years with not enough buy backs diluting their share which in my opinion is one of the reasons their stock doesn’t rise much beyond where it’s currently at, again IMO.
Cp most likely will be allowed the Kansas purchase due to not having a southern route to the Gulf of Mexico and cn already does which this is the play to block cp rail! and why they won’t be allowed for monopolization reasons.
In my opinion CP is the current better buy due to the 5 to 1 split which most definitely will gain momentum afterwards to rise and take a run at cnr stock prices! Better managed equal contracts and will soon acquire the similar mileage with half the fat to trim!
I just purchased an additional 240 stocks this morning, putting my money where my mouth is!
Big news with CNR, Kansas deal!!! What do you think, Brandon?
...I bought CP at around $97 betting the CNR deal would not go through...so far a losing bet, I literally could not have bought at a higher price, and CNR has done quite well! But with the CNR Kansas city deal apparently failing, just like CP said it would...CNR has gone higher still! CP dipped heavily on the news, and is recovering as I write. So when CNR looked like the winner, it's stock went up, and when the deal fell through...their stock wen tup again! I am confused.
@@roberttaylor3594 I bought CNR when the stock went down, just when they announced the outbid, so I don't know what are you talking about. Having said that, the long term (old) investors of CNR were mad about the deal, they thought is too much money, so now that the bid is back on CP terms, both old and future investors are happy cause CNR was great stock despite the bid. CP deal seems more reasonable as most of their current shareholders are happy with it. Also competition-wise, it is better letting CP catch up to CNR, rather than letting CNR obliterate the competition. I now have stocks in both btw :)
Am I the only one who wish CP win the kansas deal ?? Their rail road map would become similar the CNR
What now with CP's stock at around 80 bucks? BTW I have both also and participate in CP's stock option plan as an employee which is nice. I'd definitely consider both but definitely would snag some CP now right?
Usually after a split there is a dip in price. Saw it with apple and tesla last year. Wait a week or two and then buy more. Just going off what history has shown.
@@mcmicmike it's at 80 bucks now where it was at 380 a share a bit ago... Is that not low... I picked some up.
@@RogerDiotte I'd say for sure its a great price especially longterm. But I'm curious if you could buy it for 70 or 80 in the next 3 weeks. If it gets to 80 ill buy 10
you mean CNI right?
You need to look at what is shipped and who buys the product that is shipped. Some hubs will be abandoned in the future.... you need to understand big industry manufactoring and their future growth or failure to pick.
Excuse-me, what do you mean by «hubs» ? Thank you !
With next years economic recovery, personally I think there will be more house construction and infrastructure. That will help CN/CP because volume will maybe go up, and they make their money with volume. I think they're doing business-to-business, so they are just involved in the the freight volume.
@@jeremyaficionadoFR industrial areas,ports.... Basically the area that produces products and needs the services.
@@adrianquaife9531 Ok, thank you for your answer. Honestly, I don't think It will be a major problem for the moment because they are pretty centralized into Canada and USA, and now Mexico. If you want to develop you point, I would read carefully.
CN is about to become the first Mex/AM/CAN railroad. They invest in their own future so my money is on CN. I'm also bias as I worked there 35 years.
I've heard that CP is going forward with a stock split this year. Currently I only hold CNR, having bought more at the start of the recent dip when it dropped to my previous paid share price. It dropped more since, but I haven't bought more. I might end up buying a share of CP to match my CNR investment. Not quite sure on when to time that though.
Something else that came to mind and then I forgot about was that around the same time period you talk about (2014 or thereabouts) I believe there was a change in management from CNR to CP, with the latter moving more towards finding "efficencies" around that time.
There was a standoff with the union around then, leading to a situation where engineers left their trains on the track at midnight and in one instance not setting the hand brakes despite their safety regulations after Lac Magenac (spelling?) at management's orders, which thankfully didn't cause a disaster.
YEEEHAAAA
Say what you want about electric trucks and autonomous whatever.... Rail is still the most efficient and cost effective way of moving large volumes of cargo over long distances and since companies are starting to look at electric loco's again I doubt that's gonna change.
Okay what the hell am I missing, a week ago CP was 483.02 as per your video and I’m looking at it today at 93.78....no where on the charts am I seeing it ever in the 400s. Maybe I’m just to new to see what’s happened
Hey Darius. CP split their stock 5-1, so the $483.02 is the equivalent of around $96.60. The price went down by 80%, but each shareholder now has 5 shares for each one they owned. They net result is the same. Don't worry, you aren't the only one who didn't know about that. At least you didn't rush out and buy a whole bunch of shares thinking they were on some great sale! Thanks for your question. - Marc
@@beaviswealth haha I feel like I should have been able to find that, I must not have looked hard enough. All makes sense now though. And yes I’m glad I stopped and said “wait a minute” 🤔. Thanks for the reply 😁
Own Both 🚂💵🚂
Me too, not much overlap region-wise, and both have healthy growth. CNR pays better dividends, CP has greater growth. None will go bankrupt in the mid term for sure.
Why choose? Buy both!
I was thinking to do the same since both stocks is for longer investing I will just hold them on RSP.
better idea, buy both! 600iq move zero downsides 100%
As a beginner I have difficulty understanding if there is any catch, if I buy any dividend stock right before the record date and selling after a week or so..!?
Share prices often dip right after the dividend date
How much debt did we incur when CN was privatised...CP performance improved with the move out of Montreal to Calgary and of course CN can't move from Montreal
Didn't CPR already win the contract ?
Cp will be roughly $90 after the split in couple of days . While CN is above $130.
You're prediction is right!