Critical Contrast: Bonterra Energy (OTCMKTS:BNEFF) vs. Central Japan Railway (OTCMKTS:CJPRY)

Risk and Volatility

Bonterra Energy has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Central Japan Railway has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Dividends

Bonterra Energy pays an annual dividend of $0.09 per share and has a dividend yield of 3.4%. Central Japan Railway pays an annual dividend of $0.06 per share and has a dividend yield of 0.6%. Bonterra Energy pays out 17.0% of its earnings in the form of a dividend. Central Japan Railway pays out 4.2% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bonterra Energy	10.03%	5.11%	2.78%
Central Japan Railway	19.15%	10.21%	4.49%

Institutional and Insider Ownership

0.3% of Bonterra Energy shares are held by institutional investors. Comparatively, 0.0% of Central Japan Railway shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Bonterra Energy and Central Japan Railway”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bonterra Energy	$236.68 million	0.41	$33.29 million	$0.53	4.96
Central Japan Railway	$11.85 billion	1.55	$2.66 billion	$1.43	6.54

Central Japan Railway has higher revenue and earnings than Bonterra Energy. Bonterra Energy 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.

Summary

Central Japan Railway beats Bonterra Energy on 9 of the 12 factors compared between the two stocks.

About Bonterra Energy

Bonterra Energy Corp., a conventional oil and gas company, engages in the development and production of oil and natural gas in Canada. Its principal properties include Pembina Cardium, a conventional oil field, at the Pembina and Willesden green fields located in central Alberta; and holds 100% interest in the Montney properties that consist of approximately 28,880 acres located in the north of Grand Prairie, Alberta. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

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.