Critical Comparison: China Railway Group (OTCMKTS:CRWOF) & Bird Construction (OTCMKTS:BIRDF)

Bird Construction (OTCMKTS:BIRDF) and China Railway Group (OTCMKTS:CRWOF) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bird Construction and China Railway Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bird Construction	0	0	2	0	3.00
China Railway Group	0	0	0	0	0.00

Bird Construction currently has a consensus price target of $25.25, indicating a potential upside of 15.30%. Given Bird Construction’s stronger consensus rating and higher probable upside, analysts clearly believe Bird Construction is more favorable than China Railway Group.

Dividends

Bird Construction pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. China Railway Group pays an annual dividend of $0.07 per share and has a dividend yield of 13.3%. Bird Construction pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Railway Group pays out 13.8% of its earnings in the form of a dividend. China Railway Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Bird Construction and China Railway Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bird Construction	N/A	N/A	N/A	$0.68	32.04
China Railway Group	N/A	N/A	N/A	$0.48	1.04

China Railway Group is trading at a lower price-to-earnings ratio than Bird Construction, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

45.3% of Bird Construction shares are owned by institutional investors. Comparatively, 2.8% of China Railway Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Bird Construction and China Railway Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bird Construction	N/A	N/A	N/A
China Railway Group	N/A	N/A	N/A

Summary

Bird Construction beats China Railway Group on 6 of the 8 factors compared between the two stocks.

About Bird Construction

Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, and institutional, and infrastructure markets. It constructs large, complex industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; and provides electrical and instrumentation, high voltage testing and commissioning services, as well as power line construction, structural, mechanical, and piping, including off-site metal and modular fabrication. It also engages in the civil construction operations, such as site preparation and earthworks, underground piping, utilities and foundation, drilling, blasting, and other concrete services, as well as contract mining, mine support, and greenfield and brownfield hydroelectric facilities; steel modular construction; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, it constructs and retrofits institutional facilities, include healthcare facilities, post-secondary education facilities, K-12 schools, public safety and defence facilities, recreation facilities, transportation, courthouses, government buildings, and long term care and senior housing facilities; offers industrial maintenance, repair, and operations services; and constructs new construction and retrofit of warehousing, laboratories, manufacturing and processing facilities, data centers, office buildings, retail spaces, film studio infrastructure, hotels, and mixed-use mid- to high-rise residential buildings. Further, it offers electrical and related system services, such as electrical and mechanical infrastructure design and installation, data communications, telecommunications, security, and lifecycle services. It serves oil and gas, chemicals, liquefied natural gas, natural resources, nuclear, power, renewable energy, and water and wastewater sectors. The company was founded in 1920 and is based in Mississauga, Canada.

About China Railway Group

China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People's Republic of China, Hong Kong, and Macau. Its Infrastructure Construction segment constructs railways, highways, bridges, tunnels, metropolitan railways, buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works. The company's Survey, Design and Consulting Services segment provides survey, design, consulting, research and development, feasibility study, and compliance certification services to infrastructure construction projects. Its Engineering Equipment and Component Manufacturing segment designs, researches and develops, manufactures, and sells turnouts, bridge steel structures, other railway-related equipment, engineering equipment, component manufacturing, and materials. The company's Property Development segment develops, sells, and manages residential and commercial properties. Its Other Businesses segment is involved in mining, financial, and operation service concession arrangements operation, merchandise trading, and other ancillary businesses. China Railway Group Limited was founded in 1950 and is based in Beijing, China.