Ready, set, go: ComfortDelGro races ahead of SMRT thanks to ambitious overseas ventures

Its diversified earnings base is a big plus.

ComfortDelGro is set to race ahead of SMRT this year thanks to its diversified earnings base and ambitious overseas expansion ventures, a report by CIMB stated.

The report noted that CDG has better growth visibility than SMRT in view of its proven and successful overseas growth strategy.

“With a global presence, CDG’s operating profit was mainly derived from overseas bus operation, local taxi operation and other businesses – including engineering and inspection services. Currently focused on Singapore, SMRT’s 2014 operating profit was mainly derived from non-fare businesses, including rental and advertisement businesses. In 2014, local bus and rail fare businesses had stayed depressed for both the operators, due mainly to higher labour and energy costs,” stated the report.