Critical Survey: FTAI Infrastructure (NASDAQ:FIP) vs. Central Japan Railway (OTCMKTS:CJPRY)

Central Japan Railway (OTCMKTS:CJPRY) and FTAI Infrastructure (NASDAQ:FIP) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares Central Japan Railway and FTAI Infrastructure”s revenue, earnings per share 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	6.66
FTAI Infrastructure	$502.52 million	0.88	-$107.17 million	($5.19)	-0.72

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

Risk and Volatility

Central Japan Railway has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, FTAI Infrastructure has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Central Japan Railway shares are held by institutional investors. Comparatively, 87.4% of FTAI Infrastructure shares are held by institutional investors. 2.6% of FTAI Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Central Japan Railway and FTAI Infrastructure’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%
FTAI Infrastructure	-74.10%	-147.01%	-8.63%

Dividends

Central Japan Railway pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. FTAI Infrastructure pays an annual dividend of $0.12 per share and has a dividend yield of 3.2%. Central Japan Railway pays out 3.2% of its earnings in the form of a dividend. FTAI Infrastructure pays out -2.3% 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. FTAI Infrastructure is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Central Japan Railway and FTAI Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Japan Railway	0	0	0	0	0.00
FTAI Infrastructure	1	0	3	0	2.50

FTAI Infrastructure has a consensus target price of $9.94, suggesting a potential upside of 166.42%. Given FTAI Infrastructure’s stronger consensus rating and higher possible upside, analysts clearly believe FTAI Infrastructure is more favorable than Central Japan Railway.

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 FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.