Comparison of shares – Transportation sector (Road and Rail)

The table below shows three public transport operators of our bus and rail system.

The columns in the table are: closing share price as at 23 August, book value per share, price to book ratio, dividend yield and price earning ratio (based last reported financial results).

Price at 23 Aug

Book value per share

Price To Book

Dividend Yield (%)

Price earning ratio

SMRT CORP

1.73

0.526

3.289

4.913

16.796

SBS Transit Ltd

1.74

1.026

1.696

4.253

12.017

COMFORTDELGRO

1.31

0.861

1.521

4.198

12.092

ComfortDelgro has operations in seven countries including Singapore. The major parts of Singapore operations come from listed bus and train subsidiary, SBS Transit Limited, ComfortDelgro taxis and listed vehicle inspection business, VICOM Limited. ComfortDelgro owns 75% of SBS Transit Limited and 68% of VICOM Limited.

SMRT operates the extensive MRT network in Singapore, SMRT buses and taxis.

SMRT had highest dividend yield at 4.913%. Both SBS Transit and ComfortDelgro too had above 4.0% dividend yields.

On basis of Price to Book ratio and Price Earning ratio, SMRT commands a premium on stock price when compared to the other two operators.

During this time of economic uncertainty, public transport companies were considered defensive stocks. This is because even during time of slow economic growth or recession, residents still need public transport to move around.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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