Financial Comparison: West Japan Railway (OTCMKTS:WJRYY) vs. Central Japan Railway (OTCMKTS:CJPRY)

Profitability

This table compares West Japan Railway and Central Japan Railway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Japan Railway	6.66%	9.01%	3.07%
Central Japan Railway	20.14%	10.27%	4.59%

Valuation & Earnings

This table compares West Japan Railway and Central Japan Railway”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Japan Railway	$11.22 billion	0.96	$752.13 million	$1.59	14.41
Central Japan Railway	$12.03 billion	1.83	$3.03 billion	$1.53	7.31

Central Japan Railway has higher revenue and earnings than West Japan Railway. Central Japan Railway is trading at a lower price-to-earnings ratio than West Japan Railway, indicating that it is currently the more affordable of the two stocks.

Dividends

West Japan Railway pays an annual dividend of $0.51 per share and has a dividend yield of 2.2%. Central Japan Railway pays an annual dividend of $0.07 per share and has a dividend yield of 0.6%. West Japan Railway pays out 32.1% of its earnings in the form of a dividend. Central Japan Railway pays out 4.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

0.0% of Central Japan Railway shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

West Japan Railway has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Central Japan Railway has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Summary

Central Japan Railway beats West Japan Railway on 8 of the 12 factors compared between the two stocks.

About West Japan Railway

West Japan Railway Company provides railway transport services in Japan. The company operates through Mobility, Retail, Real Estate, Travel and Regional Solutions, and Other segments. The Mobility segment provides passenger transportation, station operation and management, cleaning and maintenance, construction, machinery and equipment installation, rolling stock and other facility construction services, as well as engages in the railway operations and electric works. The Retail segment sells goods; offers food and other wholesale operation services; and operates department stores. The Real Estate segment sells and leases real estate properties, as well as operates shopping centers and hotels. The Travel and Regional Solutions segment provides travel agency and regional solutions. The Other segment engages in the advertising and other businesses. The company is also involved in the operation of convenience stores, restaurants, and souvenir shops; and provision of credit cards and electronic money services. The company was incorporated in 1987 and is based in Osaka, Japan.

About Central Japan Railway

Central Japan Railway Company engages in the railway and related businesses in Japan. The company operates through Transportation, Merchandise and Other, Real Estate, and Other segments. It primarily operates Tokaido Shinkansen, a transportation artery that links metropolitan areas of Tokyo, Nagoya, and Osaka, as well as a network of 12 conventional lines centered on the Nagoya and Shizuoka areas. The company also provides bus, logistics, travel agency, advertising, linen supply, track maintenance, construction and construction consulting, and contracted accounting and financial services; and manufactures and maintains railway rolling stock and machinery. In addition, it is involved in the operation of a department store; wholesale and retail sales business; sale of food and beverages; leasing and sale of real estate; hotel business; and development, improvement, and maintenance of computer systems. The company was incorporated in 1987 and is headquartered in Nagoya, Japan.