Financial Contrast: Matson (MATX) and Brookfield Infrastructure Partners (BIP)

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Matson (NYSE: MATX) and Brookfield Infrastructure Partners (NYSE:BIP) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Matson and Brookfield Infrastructure Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Matson 11.48% 14.30% 3.85%
Brookfield Infrastructure Partners 5.40% 2.31% 1.01%

Insider and Institutional Ownership

84.2% of Matson shares are owned by institutional investors. Comparatively, 47.9% of Brookfield Infrastructure Partners shares are owned by institutional investors. 2.5% of Matson shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Matson pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Brookfield Infrastructure Partners pays an annual dividend of $1.88 per share and has a dividend yield of 4.9%. Matson pays out 44.9% of its earnings in the form of a dividend. Brookfield Infrastructure Partners pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Matson has increased its dividend for 5 consecutive years and Brookfield Infrastructure Partners has increased its dividend for 8 consecutive years. Brookfield Infrastructure Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Matson has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Brookfield Infrastructure Partners has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Matson and Brookfield Infrastructure Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Matson 0 2 3 0 2.60
Brookfield Infrastructure Partners 0 1 8 0 2.89

Matson currently has a consensus target price of $37.00, suggesting a potential downside of 4.57%. Brookfield Infrastructure Partners has a consensus target price of $46.56, suggesting a potential upside of 20.17%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Brookfield Infrastructure Partners is more favorable than Matson.

Valuation and Earnings

This table compares Matson and Brookfield Infrastructure Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Matson $2.05 billion 0.81 $232.00 million $1.78 21.78
Brookfield Infrastructure Partners $3.54 billion 3.03 $124.00 million $1.51 25.66

Matson has higher earnings, but lower revenue than Brookfield Infrastructure Partners. Matson is trading at a lower price-to-earnings ratio than Brookfield Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Matson beats Brookfield Infrastructure Partners on 9 of the 17 factors compared between the two stocks.

Matson Company Profile

Matson, Inc. provides ocean transportation and logistics services. The company's Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, it offers ship management services. The Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load forwarding services; warehousing and distribution services; and supply chain management services. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii.

Brookfield Infrastructure Partners Company Profile

Brookfield Infrastructure Partners L.P. engages in utility, transport, energy, and communications infrastructure businesses. The company's Utilities segment operates approximately 2,000 kilometers (km) of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; approximately 12,000 km of electricity transmission lines in North and South America; approximately 3.3 million electricity and natural gas connections in the United Kingdom and Colombia; and a port facility that exports metallurgical and thermal coal in Australia. Its Transport segment offers transportation, storage, and handling services for freight, bulk commodities, and passengers through a network of 5,500 km of track network in south of Western Australia; approximately 4,800 km of rail in South America; approximately 4,000 km of motorways in Brazil, Chile, Peru, and India; and 37 port terminals in North America, the United Kingdom, Australia, and Europe. The company's Energy segment offers energy transportation, distribution, and storage services through approximately 15,000 km of natural gas transmission pipelines; and 600 billion cubic feet of natural gas storage in the United States and Canada. This segment also provides heating, cooling, and energy solutions; and distributed natural gas, water, and wastewater services to approximately 59,000 commercial and residential customers. Its Communications Infrastructure segment offers services and critical infrastructure to the media broadcasting and telecom sectors. It has approximately 7,000 multi-purpose towers and active rooftop sites; and 5,000 km of fiber backbone located in France. Brookfield Infrastructure Partners Limited serves as the general partner of the company. Brookfield Infrastructure Partners L.P. was founded in 2007 and is based in Hamilton, Bermuda. The company is a subsidiary of Brookfield Asset Management Inc.

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