Central Japan Railway (OTCMKTS:CJPRY – Get Rating) and Red Eléctrica Corporación (OTCMKTS:RDEIY – Get Rating) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
Volatility and Risk
Central Japan Railway has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Red Eléctrica Corporación has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
Get Central Japan Railway alerts:Insider and Institutional Ownership
0.0% of Red Eléctrica Corporación shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Central Japan Railway and Red Eléctrica Corporación, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Central Japan Railway | 0 | 0 | 0 | 0 | N/A |
| Red Eléctrica Corporación | 1 | 3 | 1 | 0 | 2.00 |
Red Eléctrica Corporación has a consensus target price of $19.13, indicating a potential upside of 111.15%. Given Red Eléctrica Corporación's higher possible upside, analysts clearly believe Red Eléctrica Corporación is more favorable than Central Japan Railway.
Profitability
This table compares Central Japan Railway and Red Eléctrica Corporación's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Central Japan Railway | 10.17% | 3.44% | 1.33% |
| Red Eléctrica Corporación | N/A | N/A | N/A |
Valuation and Earnings
This table compares Central Japan Railway and Red Eléctrica Corporación's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Central Japan Railway | $8.33 billion | N/A | -$462.15 million | $0.49 | 24.90 |
| Red Eléctrica Corporación | $2.31 billion | 4.24 | $805.25 million | N/A | N/A |
Red Eléctrica Corporación has lower revenue, but higher earnings than Central Japan Railway.
Summary
Red Eléctrica Corporación beats Central Japan Railway on 5 of the 9 factors compared between the two stocks.
About Central Japan Railway
(Get Rating)
Central Japan Railway Co. engages in the operation of railway services. It operates through the following segments: Transportation, Merchandise, Real Estate, and Others. The Transportation segment involves railway and bus transportation services. The Merchandise segment manages department stores and also provides sales services of goods, and food in stations and trains. The Real Estate segment engages in the development of commercial facilities in stations and areas under elevated track columns. The Others segment manages hotels at major stations, travel business and advertising agencies. It also manufactures rolling stock and maintains, inspects and repairs railway facilities. The company was founded on April 1, 1987 and is headquartered in Nagoya, Japan.
About Red Eléctrica Corporación
(Get Rating)
Red Eléctrica Corp. SA engages in the power transmission and operation of electrical systems. It also offers telecommunication services and other related activities. The company was founded on January 29, 1985 and is headquartered in Alcobendas, Spain.
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