Seek Returns logo

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

Updated on

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

Company Profile

SymbolCPHWM
Company NameCanadian Pacific Kansas City LimitedHowmet Aerospace Inc.
CountryCanadaUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryGround TransportationAerospace & Defense
Market Capitalization64.75 billion USD81.46 billion USD
ExchangeNYSENYSE
Listing DateDecember 30, 1983November 1, 2016
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CP and HWM 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. HWM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCPHWM
5-Day Price Return-0.38%-3.08%
13-Week Price Return-2.84%18.71%
26-Week Price Return-7.47%28.42%
52-Week Price Return-7.09%75.60%
Month-to-Date Return-1.78%-1.29%
Year-to-Date Return-4.76%85.87%
10-Day Avg. Volume1.53M2.03M
3-Month Avg. Volume1.59M2.29M
3-Month Volatility19.18%24.72%
Beta0.741.31

Profitability

Return on Equity (TTM)

CP

9.07%

Ground Transportation Industry

Max
23.31%
Q3
13.97%
Median
9.07%
Q1
6.97%
Min
1.90%

CP’s Return on Equity of 9.07% is on par with the norm for the Ground Transportation industry, indicating its profitability relative to shareholder equity is typical for the sector.

HWM

29.70%

Aerospace & Defense Industry

Max
43.89%
Q3
23.64%
Median
12.98%
Q1
8.07%
Min
-2.55%

In the upper quartile for the Aerospace & Defense industry, HWM’s Return on Equity of 29.70% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

CP

28.38%

Ground Transportation Industry

Max
33.54%
Q3
16.85%
Median
7.19%
Q1
4.37%
Min
-12.12%

A Net Profit Margin of 28.38% places CP in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.

HWM

18.18%

Aerospace & Defense Industry

Max
14.96%
Q3
9.50%
Median
6.59%
Q1
4.45%
Min
1.01%

HWM’s Net Profit Margin of 18.18% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

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

Operating Profit Margin (TTM)

CP

36.97%

Ground Transportation Industry

Max
42.90%
Q3
24.00%
Median
10.93%
Q1
7.11%
Min
-12.12%

An Operating Profit Margin of 36.97% 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.

HWM

25.10%

Aerospace & Defense Industry

Max
17.97%
Q3
12.09%
Median
9.29%
Q1
6.41%
Min
-1.59%

HWM’s Operating Profit Margin of 25.10% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolCPHWM
Return on Equity (TTM)9.07%29.70%
Return on Assets (TTM)4.91%13.33%
Net Profit Margin (TTM)28.38%18.18%
Operating Profit Margin (TTM)36.97%25.10%
Gross Profit Margin (TTM)85.12%33.43%

Financial Strength

Current Ratio (MRQ)

CP

0.63

Ground Transportation Industry

Max
2.11
Q3
1.32
Median
1.02
Q1
0.74
Min
0.39

CP’s Current Ratio of 0.63 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.

HWM

2.35

Aerospace & Defense Industry

Max
3.37
Q3
2.01
Median
1.22
Q1
1.07
Min
0.68

HWM’s Current Ratio of 2.35 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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

Debt-to-Equity Ratio (MRQ)

CP

0.52

Ground Transportation Industry

Max
2.54
Q3
1.52
Median
0.99
Q1
0.49
Min
0.00

CP’s Debt-to-Equity Ratio of 0.52 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.

HWM

0.62

Aerospace & Defense Industry

Max
1.89
Q3
0.99
Median
0.63
Q1
0.39
Min
0.03

HWM’s Debt-to-Equity Ratio of 0.62 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. HWM: 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.

HWM

7.92

Aerospace & Defense Industry

Max
29.86
Q3
19.49
Median
7.09
Q1
2.62
Min
-7.63

HWM’s Interest Coverage Ratio of 7.92 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolCPHWM
Current Ratio (MRQ)0.632.35
Quick Ratio (MRQ)0.540.96
Debt-to-Equity Ratio (MRQ)0.520.62
Interest Coverage Ratio (TTM)6.977.92

Growth

Revenue Growth

CP vs. HWM: 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. HWM: 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

0.86%

Ground Transportation Industry

Max
5.32%
Q3
2.61%
Median
1.59%
Q1
0.75%
Min
0.00%

CP’s Dividend Yield of 0.86% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.

HWM

0.20%

Aerospace & Defense Industry

Max
2.87%
Q3
1.46%
Median
0.58%
Q1
0.10%
Min
0.00%

HWM’s Dividend Yield of 0.20% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

CP

18.03%

Ground Transportation Industry

Max
149.12%
Q3
76.66%
Median
45.70%
Q1
15.53%
Min
0.00%

CP’s Dividend Payout Ratio of 18.03% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HWM

11.31%

Aerospace & Defense Industry

Max
110.40%
Q3
51.46%
Median
20.20%
Q1
4.21%
Min
0.00%

HWM’s Dividend Payout Ratio of 11.31% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolCPHWM
Dividend Yield (TTM)0.86%0.20%
Dividend Payout Ratio (TTM)18.03%11.31%

Valuation

Price-to-Earnings Ratio (TTM)

CP

20.94

Ground Transportation Industry

Max
32.48
Q3
25.52
Median
16.81
Q1
12.10
Min
5.45

CP’s P/E Ratio of 20.94 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.

HWM

55.41

Aerospace & Defense Industry

Max
94.22
Q3
53.31
Median
32.27
Q1
24.64
Min
14.57

A P/E Ratio of 55.41 places HWM in the upper quartile for the Aerospace & Defense industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CP vs. HWM: 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

5.94

Ground Transportation Industry

Max
3.82
Q3
2.15
Median
1.37
Q1
0.81
Min
0.19

With a P/S Ratio of 5.94, 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.

HWM

10.07

Aerospace & Defense Industry

Max
7.20
Q3
3.95
Median
2.35
Q1
1.71
Min
0.32

With a P/S Ratio of 10.07, HWM trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CP vs. HWM: 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

2.08

Ground Transportation Industry

Max
5.19
Q3
3.11
Median
1.41
Q1
1.18
Min
0.69

CP’s P/B Ratio of 2.08 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.

HWM

15.38

Aerospace & Defense Industry

Max
18.61
Q3
9.58
Median
5.45
Q1
3.11
Min
0.94

HWM’s P/B Ratio of 15.38 is in the upper tier for the Aerospace & Defense 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.

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

Valuation at a Glance

SymbolCPHWM
Price-to-Earnings Ratio (TTM)20.9455.41
Price-to-Sales Ratio (TTM)5.9410.07
Price-to-Book Ratio (MRQ)2.0815.38
Price-to-Free Cash Flow Ratio (TTM)37.3262.81