CNI vs. TXT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CNI and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CNI | TXT |
|---|---|---|
| Company Name | Canadian National Railway Company | Textron Inc. |
| Country | Canada | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Ground Transportation | Aerospace & Defense |
| Market Capitalization | 60.30 billion USD | 14.43 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 26, 1996 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CNI and TXT 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.
Historical Performance at a Glance
| Symbol | CNI | TXT |
|---|---|---|
| 5-Day Price Return | 1.74% | -1.63% |
| 13-Week Price Return | 5.25% | 2.32% |
| 26-Week Price Return | -7.99% | 5.49% |
| 52-Week Price Return | -12.89% | -7.82% |
| Month-to-Date Return | 0.24% | -0.11% |
| Year-to-Date Return | -7.65% | 5.53% |
| 10-Day Avg. Volume | 1.21M | 1.19M |
| 3-Month Avg. Volume | 1.67M | 1.49M |
| 3-Month Volatility | 16.67% | 21.51% |
| Beta | 0.56 | 1.01 |
Profitability
Return on Equity (TTM)
CNI
21.61%
Ground Transportation Industry
- Max
- 23.31%
- Q3
- 13.97%
- Median
- 9.07%
- Q1
- 6.97%
- Min
- 1.90%
In the upper quartile for the Ground Transportation industry, CNI’s Return on Equity of 21.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TXT
11.25%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 23.64%
- Median
- 12.98%
- Q1
- 8.07%
- Min
- -2.55%
TXT’s Return on Equity of 11.25% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CNI
26.85%
Ground Transportation Industry
- Max
- 33.54%
- Q3
- 16.85%
- Median
- 7.19%
- Q1
- 4.37%
- Min
- -12.12%
A Net Profit Margin of 26.85% places CNI in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.
TXT
5.81%
Aerospace & Defense Industry
- Max
- 14.96%
- Q3
- 9.50%
- Median
- 6.59%
- Q1
- 4.45%
- Min
- 1.01%
TXT’s Net Profit Margin of 5.81% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CNI
37.69%
Ground Transportation Industry
- Max
- 42.90%
- Q3
- 24.00%
- Median
- 10.93%
- Q1
- 7.11%
- Min
- -12.12%
An Operating Profit Margin of 37.69% places CNI in the upper quartile for the Ground Transportation industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TXT
5.90%
Aerospace & Defense Industry
- Max
- 17.97%
- Q3
- 12.09%
- Median
- 9.29%
- Q1
- 6.41%
- Min
- -1.59%
TXT’s Operating Profit Margin of 5.90% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | CNI | TXT |
|---|---|---|
| Return on Equity (TTM) | 21.61% | 11.25% |
| Return on Assets (TTM) | 8.07% | 4.85% |
| Net Profit Margin (TTM) | 26.85% | 5.81% |
| Operating Profit Margin (TTM) | 37.69% | 5.90% |
| Gross Profit Margin (TTM) | 75.91% | 20.62% |
Financial Strength
Current Ratio (MRQ)
CNI
0.60
Ground Transportation Industry
- Max
- 2.11
- Q3
- 1.32
- Median
- 1.02
- Q1
- 0.74
- Min
- 0.39
CNI’s Current Ratio of 0.60 falls into the lower quartile for the Ground Transportation industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
TXT
1.71
Aerospace & Defense Industry
- Max
- 3.37
- Q3
- 2.01
- Median
- 1.22
- Q1
- 1.07
- Min
- 0.68
TXT’s Current Ratio of 1.71 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CNI
0.99
Ground Transportation Industry
- Max
- 2.54
- Q3
- 1.52
- Median
- 0.99
- Q1
- 0.49
- Min
- 0.00
CNI’s Debt-to-Equity Ratio of 0.99 is typical for the Ground Transportation industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
TXT
0.50
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.99
- Median
- 0.63
- Q1
- 0.39
- Min
- 0.03
TXT’s Debt-to-Equity Ratio of 0.50 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
CNI
7.66
Ground Transportation Industry
- Max
- 59.80
- Q3
- 25.78
- Median
- 8.23
- Q1
- 2.52
- Min
- -24.57
CNI’s Interest Coverage Ratio of 7.66 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.
TXT
10.72
Aerospace & Defense Industry
- Max
- 29.86
- Q3
- 19.49
- Median
- 7.09
- Q1
- 2.62
- Min
- -7.63
TXT’s Interest Coverage Ratio of 10.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CNI | TXT |
|---|---|---|
| Current Ratio (MRQ) | 0.60 | 1.71 |
| Quick Ratio (MRQ) | 0.42 | 0.73 |
| Debt-to-Equity Ratio (MRQ) | 0.99 | 0.50 |
| Interest Coverage Ratio (TTM) | 7.66 | 10.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CNI
2.64%
Ground Transportation Industry
- Max
- 5.32%
- Q3
- 2.61%
- Median
- 1.59%
- Q1
- 0.75%
- Min
- 0.00%
With a Dividend Yield of 2.64%, CNI offers a more attractive income stream than most of its peers in the Ground Transportation industry, signaling a strong commitment to shareholder returns.
TXT
0.11%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
TXT’s Dividend Yield of 0.11% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CNI
47.51%
Ground Transportation Industry
- Max
- 149.12%
- Q3
- 76.66%
- Median
- 45.70%
- Q1
- 15.53%
- Min
- 0.00%
CNI’s Dividend Payout Ratio of 47.51% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TXT
1.81%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 51.46%
- Median
- 20.20%
- Q1
- 4.21%
- Min
- 0.00%
TXT’s Dividend Payout Ratio of 1.81% is in the lower quartile for the Aerospace & Defense industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | CNI | TXT |
|---|---|---|
| Dividend Yield (TTM) | 2.64% | 0.11% |
| Dividend Payout Ratio (TTM) | 47.51% | 1.81% |
Valuation
Price-to-Earnings Ratio (TTM)
CNI
17.97
Ground Transportation Industry
- Max
- 32.48
- Q3
- 25.52
- Median
- 16.81
- Q1
- 12.10
- Min
- 5.45
CNI’s P/E Ratio of 17.97 is within the middle range for the Ground Transportation industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
TXT
17.20
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 17.20 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CNI
4.82
Ground Transportation Industry
- Max
- 3.82
- Q3
- 2.15
- Median
- 1.37
- Q1
- 0.81
- Min
- 0.19
With a P/S Ratio of 4.82, CNI trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
TXT
1.00
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.00 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
CNI
3.85
Ground Transportation Industry
- Max
- 5.19
- Q3
- 3.11
- Median
- 1.41
- Q1
- 1.18
- Min
- 0.69
CNI’s P/B Ratio of 3.85 is in the upper tier for the Ground Transportation industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
TXT
2.00
Aerospace & Defense Industry
- Max
- 18.61
- Q3
- 9.58
- Median
- 5.45
- Q1
- 3.11
- Min
- 0.94
TXT’s P/B Ratio of 2.00 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | CNI | TXT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 17.97 | 17.20 |
| Price-to-Sales Ratio (TTM) | 4.82 | 1.00 |
| Price-to-Book Ratio (MRQ) | 3.85 | 2.00 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.09 | 16.26 |