ACHR vs. CP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACHR and CP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CP’s market capitalization of 75.39 billion USD is significantly greater than ACHR’s 6.45 billion USD, highlighting its more substantial market valuation.
ACHR’s beta of 3.13 points to significantly higher volatility compared to CP (beta: 1.07), suggesting ACHR has greater potential for both gains and losses relative to market movements.
| Symbol | ACHR | CP |
|---|---|---|
| Company Name | Archer Aviation Inc. | Canadian Pacific Railway Limited |
| Country | US | CA |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Railroads |
| CEO | Adam D. Goldstein | Keith E. Creel |
| Price | 10.17 USD | 81.03 USD |
| Market Cap | 6.45 billion USD | 75.39 billion USD |
| Beta | 3.13 | 1.07 |
| Exchange | NYSE | NYSE |
| IPO Date | December 18, 2020 | December 30, 1983 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACHR and CP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ACHR
-80.09%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
ACHR has a negative Return on Equity of -80.09%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
CP
8.37%
Railroads Industry
- Max
- 40.80%
- Q3
- 24.36%
- Median
- 18.32%
- Q1
- 11.84%
- Min
- 8.37%
CP’s Return on Equity of 8.37% is in the lower quartile for the Railroads industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
ACHR
-44.42%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
ACHR has a negative Return on Invested Capital of -44.42%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
CP
4.91%
Railroads Industry
- Max
- 11.47%
- Q3
- 9.66%
- Median
- 9.08%
- Q1
- 7.36%
- Min
- 4.32%
CP’s Return on Invested Capital of 4.91% is in the lower quartile for the Railroads industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
ACHR
--
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
Net Profit Margin data for ACHR is currently unavailable.
CP
26.00%
Railroads Industry
- Max
- 27.77%
- Q3
- 26.50%
- Median
- 24.33%
- Q1
- 9.34%
- Min
- 4.79%
CP’s Net Profit Margin of 26.00% is aligned with the median group of its peers in the Railroads industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ACHR
--
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
Operating Profit Margin data for ACHR is currently unavailable.
CP
36.27%
Railroads Industry
- Max
- 41.08%
- Q3
- 37.86%
- Median
- 35.40%
- Q1
- 15.99%
- Min
- 10.85%
CP’s Operating Profit Margin of 36.27% is around the midpoint for the Railroads industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACHR | CP |
|---|---|---|
| Return on Equity (TTM) | -80.09% | 8.37% |
| Return on Assets (TTM) | -42.29% | 4.38% |
| Return on Invested Capital (TTM) | -44.42% | 4.91% |
| Net Profit Margin (TTM) | -- | 26.00% |
| Operating Profit Margin (TTM) | -- | 36.27% |
| Gross Profit Margin (TTM) | -- | 41.02% |
Financial Strength
Current Ratio
ACHR
15.80
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
ACHR’s Current Ratio of 15.80 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
CP
0.81
Railroads Industry
- Max
- 1.97
- Q3
- 1.41
- Median
- 0.85
- Q1
- 0.77
- Min
- 0.62
CP’s Current Ratio of 0.81 aligns with the median group of the Railroads industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ACHR
0.08
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, ACHR’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
CP
0.47
Railroads Industry
- Max
- 2.11
- Q3
- 1.44
- Median
- 1.19
- Q1
- 0.72
- Min
- 0.39
Falling into the lower quartile for the Railroads industry, CP’s Debt-to-Equity Ratio of 0.47 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ACHR
--
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
Interest Coverage Ratio data for ACHR is currently unavailable.
CP
6.63
Railroads Industry
- Max
- 8.45
- Q3
- 7.16
- Median
- 6.40
- Q1
- 5.53
- Min
- 4.30
CP’s Interest Coverage Ratio of 6.63 is positioned comfortably within the norm for the Railroads industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACHR | CP |
|---|---|---|
| Current Ratio (TTM) | 15.80 | 0.81 |
| Quick Ratio (TTM) | 15.80 | 0.70 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 0.47 |
| Debt-to-Asset Ratio (TTM) | 0.06 | 0.26 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.89 | 2.86 |
| Interest Coverage Ratio (TTM) | -- | 6.63 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACHR and CP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ACHR
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CP
0.73%
Railroads Industry
- Max
- 4.30%
- Q3
- 2.64%
- Median
- 2.21%
- Q1
- 1.33%
- Min
- 0.43%
CP’s Dividend Yield of 0.73% is in the lower quartile for the Railroads industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
ACHR
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CP
18.40%
Railroads Industry
- Max
- 69.30%
- Q3
- 47.83%
- Median
- 32.93%
- Q1
- 18.85%
- Min
- 13.29%
CP’s Dividend Payout Ratio of 18.40% is in the lower quartile for the Railroads industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ACHR | CP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.73% |
| Dividend Payout Ratio (TTM) | 0.00% | 18.40% |
Valuation
Price-to-Earnings Ratio
ACHR
-7.87
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
ACHR has a negative P/E Ratio of -7.87. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
CP
26.63
Railroads Industry
- Max
- 26.01
- Q3
- 22.00
- Median
- 19.48
- Q1
- 17.09
- Min
- 16.09
At 26.63, CP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Railroads industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ACHR
0.21
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
In the lower quartile for the Aerospace & Defense industry, ACHR’s Forward PEG Ratio of 0.21 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
CP
1.90
Railroads Industry
- Max
- 1.85
- Q3
- 1.84
- Median
- 1.79
- Q1
- 1.59
- Min
- 1.52
The Forward PEG Ratio is often not a primary valuation metric in the Railroads industry.
Price-to-Sales Ratio
ACHR
--
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
P/S Ratio data for ACHR is currently unavailable.
CP
6.90
Railroads Industry
- Max
- 6.74
- Q3
- 5.30
- Median
- 4.55
- Q1
- 2.73
- Min
- 0.42
With a P/S Ratio of 6.90, CP trades at a valuation that eclipses even the highest in the Railroads industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ACHR
4.00
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
ACHR’s P/B Ratio of 4.00 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
CP
2.13
Railroads Industry
- Max
- 5.11
- Q3
- 4.36
- Median
- 3.70
- Q1
- 1.98
- Min
- 1.00
CP’s P/B Ratio of 2.13 is within the conventional range for the Railroads industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ACHR | CP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -7.87 | 26.63 |
| Forward PEG Ratio (TTM) | 0.21 | 1.90 |
| Price-to-Sales Ratio (P/S, TTM) | -- | 6.90 |
| Price-to-Book Ratio (P/B, TTM) | 4.00 | 2.13 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -14.28 | 43.44 |
| EV-to-EBITDA (TTM) | -10.89 | 16.19 |
| EV-to-Sales (TTM) | -- | 8.38 |