Seek Returns logo

CP vs. ERJ: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at CP and ERJ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

CP is a standard domestic listing, while ERJ trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolCPERJ
Company NameCanadian Pacific Kansas City LimitedEmbraer S.A.
CountryCanadaBrazil
GICS SectorIndustrialsIndustrials
GICS IndustryGround TransportationAerospace & Defense
Market Capitalization68.69 billion USD11.11 billion USD
ExchangeNYSENYSE
Listing DateDecember 30, 1983July 21, 2000
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of CP and ERJ 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.

CP vs. ERJ: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCPERJ
5-Day Price Return0.70%0.24%
13-Week Price Return-3.46%0.84%
26-Week Price Return-1.02%17.52%
52-Week Price Return-10.39%60.16%
Month-to-Date Return-0.92%5.37%
Year-to-Date Return-0.41%42.89%
10-Day Avg. Volume2.01M4.58M
3-Month Avg. Volume1.57M6.03M
3-Month Volatility20.33%39.37%
Beta0.600.47

Profitability

Return on Equity (TTM)

CP

8.97%

Ground Transportation Industry

Max
23.35%
Q3
13.74%
Median
9.05%
Q1
6.86%
Min
1.73%

CP’s Return on Equity of 8.97% is on par with the norm for the Ground Transportation industry, indicating its profitability relative to shareholder equity is typical for the sector.

ERJ

11.78%

Aerospace & Defense Industry

Max
37.11%
Q3
20.14%
Median
11.72%
Q1
6.30%
Min
-6.24%

ERJ’s Return on Equity of 11.78% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

CP vs. ERJ: A comparison of their Return on Equity (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

CP

28.04%

Ground Transportation Industry

Max
32.19%
Q3
17.08%
Median
7.19%
Q1
4.45%
Min
-5.54%

A Net Profit Margin of 28.04% places CP in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.

ERJ

5.37%

Aerospace & Defense Industry

Max
13.66%
Q3
8.61%
Median
6.59%
Q1
4.92%
Min
1.01%

ERJ’s Net Profit Margin of 5.37% 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.

CP vs. ERJ: A comparison of their Net Profit Margin (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

CP

36.35%

Ground Transportation Industry

Max
42.90%
Q3
23.80%
Median
10.93%
Q1
7.06%
Min
-12.94%

An Operating Profit Margin of 36.35% places CP 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.

ERJ

11.14%

Aerospace & Defense Industry

Max
22.35%
Q3
12.83%
Median
9.29%
Q1
6.38%
Min
-2.15%

ERJ’s Operating Profit Margin of 11.14% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

CP vs. ERJ: A comparison of their Operating Profit Margin (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolCPERJ
Return on Equity (TTM)8.97%11.78%
Return on Assets (TTM)4.87%3.17%
Net Profit Margin (TTM)28.04%5.37%
Operating Profit Margin (TTM)36.35%11.14%
Gross Profit Margin (TTM)85.09%18.48%

Financial Strength

Current Ratio (MRQ)

CP

0.93

Ground Transportation Industry

Max
2.00
Q3
1.31
Median
0.98
Q1
0.74
Min
0.35

CP’s Current Ratio of 0.93 aligns with the median group of the Ground Transportation industry, indicating that its short-term liquidity is in line with its sector peers.

ERJ

1.33

Aerospace & Defense Industry

Max
3.35
Q3
2.03
Median
1.24
Q1
1.04
Min
0.77

ERJ’s Current Ratio of 1.33 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

CP vs. ERJ: A comparison of their Current Ratio (MRQ) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CP

0.48

Ground Transportation Industry

Max
2.51
Q3
1.48
Median
1.02
Q1
0.48
Min
0.00

Falling into the lower quartile for the Ground Transportation industry, CP’s Debt-to-Equity Ratio of 0.48 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ERJ

0.70

Aerospace & Defense Industry

Max
1.72
Q3
0.96
Median
0.63
Q1
0.37
Min
0.03

ERJ’s Debt-to-Equity Ratio of 0.70 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.

CP vs. ERJ: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

CP

6.97

Ground Transportation Industry

Max
59.80
Q3
25.78
Median
8.23
Q1
2.52
Min
-24.57

CP’s Interest Coverage Ratio of 6.97 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.

ERJ

36.57

Aerospace & Defense Industry

Max
36.57
Q3
19.08
Median
7.25
Q1
2.65
Min
-7.63

ERJ’s Interest Coverage Ratio of 36.57 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

CP vs. ERJ: A comparison of their Interest Coverage Ratio (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolCPERJ
Current Ratio (MRQ)0.931.33
Quick Ratio (MRQ)0.810.59
Debt-to-Equity Ratio (MRQ)0.480.70
Interest Coverage Ratio (TTM)6.9736.57

Growth

Revenue Growth

CP vs. ERJ: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CP vs. ERJ: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CP

0.78%

Ground Transportation Industry

Max
5.29%
Q3
2.57%
Median
1.59%
Q1
0.71%
Min
0.00%

CP’s Dividend Yield of 0.78% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.

ERJ

0.09%

Aerospace & Defense Industry

Max
2.72%
Q3
1.45%
Median
0.48%
Q1
0.08%
Min
0.00%

ERJ’s Dividend Yield of 0.09% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

CP vs. ERJ: A comparison of their Dividend Yield (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

CP

17.72%

Ground Transportation Industry

Max
149.12%
Q3
75.08%
Median
41.35%
Q1
16.42%
Min
0.00%

CP’s Dividend Payout Ratio of 17.72% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ERJ

11.51%

Aerospace & Defense Industry

Max
110.40%
Q3
50.43%
Median
17.11%
Q1
0.46%
Min
0.00%

ERJ’s Dividend Payout Ratio of 11.51% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CP vs. ERJ: A comparison of their Dividend Payout Ratio (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolCPERJ
Dividend Yield (TTM)0.78%0.09%
Dividend Payout Ratio (TTM)17.72%11.51%

Valuation

Price-to-Earnings Ratio (TTM)

CP

22.75

Ground Transportation Industry

Max
39.04
Q3
24.45
Median
17.51
Q1
12.92
Min
5.87

CP’s P/E Ratio of 22.75 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.

ERJ

27.59

Aerospace & Defense Industry

Max
67.20
Q3
55.74
Median
33.28
Q1
27.49
Min
15.02

ERJ’s P/E Ratio of 27.59 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CP vs. ERJ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

CP

6.38

Ground Transportation Industry

Max
2.82
Q3
2.22
Median
1.41
Q1
0.88
Min
0.24

With a P/S Ratio of 6.38, CP 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.

ERJ

1.48

Aerospace & Defense Industry

Max
9.06
Q3
4.87
Median
2.47
Q1
1.61
Min
0.33

In the lower quartile for the Aerospace & Defense industry, ERJ’s P/S Ratio of 1.48 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.

CP vs. ERJ: A comparison of their Price-to-Sales Ratio (TTM) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

CP

2.18

Ground Transportation Industry

Max
5.27
Q3
3.03
Median
1.40
Q1
1.18
Min
0.67

CP’s P/B Ratio of 2.18 is within the conventional range for the Ground Transportation 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.

ERJ

3.13

Aerospace & Defense Industry

Max
14.90
Q3
8.93
Median
4.70
Q1
3.03
Min
0.83

ERJ’s P/B Ratio of 3.13 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 vs. ERJ: A comparison of their Price-to-Book Ratio (MRQ) against their respective Ground Transportation and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolCPERJ
Price-to-Earnings Ratio (TTM)22.7527.59
Price-to-Sales Ratio (TTM)6.381.48
Price-to-Book Ratio (MRQ)2.183.13
Price-to-Free Cash Flow Ratio (TTM)38.0410.07