Kansas City Southern (NYSE: KSU) is one of 28 publicly-traded companies in the “Ground Freight & Logistics” industry, but how does it contrast to its rivals? We will compare Kansas City Southern to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kansas City Southern and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kansas City Southern 0 10 7 0 2.41
Kansas City Southern Competitors 180 1284 1784 70 2.53

Kansas City Southern currently has a consensus target price of $105.77, suggesting a potential downside of 1.53%. As a group, “Ground Freight & Logistics” companies have a potential upside of 10.14%. Given Kansas City Southern’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Kansas City Southern has less favorable growth aspects than its rivals.

Dividends

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 28.9% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.7% and pay out 36.3% of their earnings in the form of a dividend. Kansas City Southern has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

84.6% of Kansas City Southern shares are held by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 1.0% of Kansas City Southern shares are held by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Kansas City Southern and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kansas City Southern $2.47 billion $1.18 billion 21.57
Kansas City Southern Competitors $5.92 billion $1.74 billion -5.98

Kansas City Southern’s rivals have higher revenue and earnings than Kansas City Southern. Kansas City Southern is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Kansas City Southern has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Kansas City Southern’s rivals have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.

Profitability

This table compares Kansas City Southern and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kansas City Southern 21.52% 11.40% 5.68%
Kansas City Southern Competitors 10.86% 15.03% 5.33%

Summary

Kansas City Southern rivals beat Kansas City Southern on 10 of the 15 factors compared.

Kansas City Southern Company Profile

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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