Constellation Software (OTCMKTS:CNSWF) versus A.P. Møller – Mærsk A/S (OTCMKTS:AMKBY) Critical Contrast

A.P. Møller – Mærsk A/S (OTCMKTS:AMKBY) and Constellation Software (OTCMKTS:CNSWF) are both large-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Risk and Volatility

A.P. Møller – Mærsk A/S has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Constellation Software has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares A.P. Møller – Mærsk A/S and Constellation Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A.P. Møller – Mærsk A/S	2.16%	1.62%	1.44%
Constellation Software	6.47%	78.00%	16.62%

Valuation and Earnings

This table compares A.P. Møller – Mærsk A/S and Constellation Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A.P. Møller – Mærsk A/S	$51.07 billion	0.58	$3.82 billion	$0.51	15.61
Constellation Software	$8.41 billion	8.13	$565.00 million	$24.83	129.94

A.P. Møller – Mærsk A/S has higher revenue and earnings than Constellation Software. A.P. Møller – Mærsk A/S is trading at a lower price-to-earnings ratio than Constellation Software, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for A.P. Møller – Mærsk A/S and Constellation Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A.P. Møller – Mærsk A/S	3	4	1	0	1.75
Constellation Software	0	0	0	0	N/A

Dividends

A.P. Møller – Mærsk A/S pays an annual dividend of $0.24 per share and has a dividend yield of 3.0%. Constellation Software pays an annual dividend of $4.00 per share and has a dividend yield of 0.1%. A.P. Møller – Mærsk A/S pays out 47.1% of its earnings in the form of a dividend. Constellation Software pays out 16.1% 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.

Summary

Constellation Software beats A.P. Møller – Mærsk A/S on 7 of the 12 factors compared between the two stocks.

About A.P. Møller – Mærsk A/S

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.