Head to Head Contrast: Grab (NASDAQ:GRAB) versus Central Japan Railway (OTCMKTS:CJPRY)
by Scott Moore · The Cerbat GemCentral Japan Railway (OTCMKTS:CJPRY – Get Free Report) and Grab (NASDAQ:GRAB – Get Free Report) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.
Profitability
This table compares Central Japan Railway and Grab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Central Japan Railway | 27.29% | 10.75% | 5.08% |
| Grab | 15.97% | 8.83% | 4.92% |
Valuation and Earnings
This table compares Central Japan Railway and Grab”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Central Japan Railway | $13.33 billion | 1.85 | $3.65 billion | $1.85 | 6.65 |
| Grab | $3.37 billion | 4.30 | $268.00 million | $0.06 | 58.92 |
Central Japan Railway has higher revenue and earnings than Grab. Central Japan Railway is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Central Japan Railway and Grab, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Central Japan Railway | 0 | 0 | 0 | 0 | 0.00 |
| Grab | 1 | 1 | 8 | 1 | 2.82 |
Grab has a consensus target price of $6.01, indicating a potential upside of 69.89%. Given Grab’s stronger consensus rating and higher possible upside, analysts plainly believe Grab is more favorable than Central Japan Railway.
Volatility & Risk
Central Japan Railway has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Grab has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
Institutional and Insider Ownership
0.0% of Central Japan Railway shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 3.6% of Grab shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Grab beats Central Japan Railway on 9 of the 15 factors compared between the two stocks.
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.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.