Schneider National (NYSE: SNDR) and Kansas City Southern (NYSE:KSU) are both mid-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Schneider National pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Kansas City Southern pays an annual dividend of $1.44 per share and has a dividend yield of 1.3%. Kansas City Southern pays out 28.3% of its earnings in the form of a dividend. Kansas City Southern has increased its dividend for 3 consecutive years. Kansas City Southern is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Schneider National and Kansas City Southern’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kansas City Southern||21.42%||11.86%||5.88%|
Institutional & Insider Ownership
21.5% of Schneider National shares are held by institutional investors. Comparatively, 83.6% of Kansas City Southern shares are held by institutional investors. 1.0% of Kansas City Southern shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Schneider National and Kansas City Southern, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kansas City Southern||0||8||9||0||2.53|
Schneider National currently has a consensus price target of $24.50, suggesting a potential downside of 7.30%. Kansas City Southern has a consensus price target of $112.20, suggesting a potential upside of 0.10%. Given Kansas City Southern’s higher possible upside, analysts plainly believe Kansas City Southern is more favorable than Schneider National.
Earnings & Valuation
This table compares Schneider National and Kansas City Southern’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schneider National||$4.05 billion||1.16||$156.85 million||N/A||N/A|
|Kansas City Southern||$2.33 billion||4.97||$478.10 million||$5.09||22.02|
Kansas City Southern has lower revenue, but higher earnings than Schneider National.
Kansas City Southern beats Schneider National on 11 of the 14 factors compared between the two stocks.
About Schneider National
Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.
About Kansas City Southern
Kansas City Southern (KCS) is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, S.A. de C.V. (KCSM). KCSR serves a 10-state region in the midwest and southeast regions of the United States and has the north/south rail route between Kansas City, Missouri and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. KCSM operates a corridor of the Mexican railroad system. KCSM’s rail lines provide rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas. KCSM also provides rail access to the Port of Lazaro Cardenas on the Pacific Ocean.
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