Uber Technologies (NYSE:UBER) vs. Canadian Pacific Kansas City (NYSE:CP) Critical Contrast

Canadian Pacific Kansas City (NYSE:CP) and Uber Technologies (NYSE:UBER) are both large-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Volatility & Risk

Canadian Pacific Kansas City has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

72.2% of Canadian Pacific Kansas City shares are owned by institutional investors. Comparatively, 80.2% of Uber Technologies shares are owned by institutional investors. 0.0% of Canadian Pacific Kansas City shares are owned by company insiders. Comparatively, 3.8% of Uber Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Canadian Pacific Kansas City and Uber Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Pacific Kansas City	25.02%	9.02%	4.86%
Uber Technologies	17.34%	43.36%	19.15%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Canadian Pacific Kansas City and Uber Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Pacific Kansas City	0	4	12	1	2.82
Uber Technologies	3	4	33	2	2.81

Canadian Pacific Kansas City currently has a consensus target price of $111.83, indicating a potential upside of 24.74%. Uber Technologies has a consensus target price of $102.97, indicating a potential upside of 57.82%. Given Uber Technologies’ higher probable upside, analysts plainly believe Uber Technologies is more favorable than Canadian Pacific Kansas City.

Earnings and Valuation

This table compares Canadian Pacific Kansas City and Uber Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Pacific Kansas City	$15.45 billion	5.08	$2.96 billion	$3.11	28.83
Uber Technologies	$55.23 billion	2.41	$10.05 billion	$4.55	14.34

Uber Technologies has higher revenue and earnings than Canadian Pacific Kansas City. Uber Technologies is trading at a lower price-to-earnings ratio than Canadian Pacific Kansas City, indicating that it is currently the more affordable of the two stocks.

Summary

Uber Technologies beats Canadian Pacific Kansas City on 11 of the 15 factors compared between the two stocks.

About Canadian Pacific Kansas City

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers. It also provides rail and intermodal transportation services over a network of approximately 20,000 miles serving business centres. The company was formerly known as Canadian Pacific Railway Limited and changed its name to Canadian Pacific Kansas City Limited in April 2023. Canadian Pacific Kansas City Limited was incorporated in 1881 and is headquartered in Calgary, Canada.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.