Analyzing Norfolk Souther Corporation (NSC) & Its Competitors

Norfolk Souther Corporation (NYSE: NSC) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it compare to its peers? We will compare Norfolk Souther Corporation to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Institutional and Insider Ownership

70.5% of Norfolk Souther Corporation shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are owned by institutional investors. 0.4% of Norfolk Souther Corporation shares are owned by company insiders. Comparatively, 11.9% of shares of all “Ground Freight & Logistics” companies 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.

Analyst Ratings

This is a summary of current ratings and price targets for Norfolk Souther Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Norfolk Souther Corporation 3 15 5 0 2.09
Norfolk Souther Corporation Competitors 184 1301 1809 71 2.53

Norfolk Souther Corporation currently has a consensus price target of $117.40, indicating a potential downside of 10.05%. As a group, “Ground Freight & Logistics” companies have a potential upside of 11.30%. Given Norfolk Souther Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Norfolk Souther Corporation has less favorable growth aspects than its peers.

Dividends

Norfolk Souther Corporation pays an annual dividend of $2.44 per share and has a dividend yield of 1.9%. Norfolk Souther Corporation pays out 39.6% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.6% and pay out 35.4% of their earnings in the form of a dividend. Norfolk Souther Corporation has raised its dividend for 7 consecutive years.

Volatility and Risk

Norfolk Souther Corporation has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Norfolk Souther Corporation’s peers have a beta of 1.38, suggesting that their average stock price is 38% more volatile than the S&P 500.

Earnings and Valuation

This table compares Norfolk Souther Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Norfolk Souther Corporation $10.23 billion $4.29 billion 21.19
Norfolk Souther Corporation Competitors $5.92 billion $1.74 billion -3.02

Norfolk Souther Corporation has higher revenue and earnings than its peers. Norfolk Souther Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Norfolk Souther Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Norfolk Souther Corporation 17.66% 14.45% 5.18%
Norfolk Souther Corporation Competitors 10.96% 15.06% 5.34%

Summary

Norfolk Souther Corporation peers beat Norfolk Souther Corporation on 10 of the 15 factors compared.

About Norfolk Souther Corporation

Norfolk Southern Corporation is a holding company engaged in the rail transportation business. As of December 31, 2016, the Company operated approximately 19,500 miles of road primarily in the East and Midwest. The Company is engaged in the rail transportation of raw materials, intermediate products and finished goods primarily in the Southeast, East and Midwest. The Company, through interchange with rail carriers, to and from the rest of the United States. The Company also transports overseas freight through various Atlantic and Gulf Coast ports. It provides logistics services and offers the intermodal network in the eastern half of the United States. The Company’s system reaches various manufacturing plants, electric generating facilities, mines, distribution centers and other businesses located in its service area. The Company’s intermodal market group consists of shipments moving in trailers, domestic and international containers, and RoadRailer equipment.

Receive News & Ratings for Norfolk Souther Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Norfolk Souther Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply