Norfolk Souther Corporation (NSC) and Its Rivals Critical Analysis
Norfolk Souther Corporation (NYSE: NSC) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it contrast to its rivals? We will compare Norfolk Souther Corporation to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.
Institutional & 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 insiders. Comparatively, 11.9% of shares of all “Ground Freight & Logistics” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Norfolk Souther Corporation and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Norfolk Souther Corporation||3||16||5||0||2.08|
|Norfolk Souther Corporation Competitors||184||1304||1812||71||2.53|
Norfolk Souther Corporation currently has a consensus target price of $118.00, suggesting a potential downside of 11.11%. As a group, “Ground Freight & Logistics” companies have a potential upside of 10.56%. Given Norfolk Souther Corporation’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Norfolk Souther Corporation has less favorable growth aspects than its rivals.
Earnings & Valuation
This table compares Norfolk Souther Corporation and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Norfolk Souther Corporation||$10.23 billion||$4.29 billion||21.55|
|Norfolk Souther Corporation Competitors||$5.92 billion||$1.74 billion||-5.23|
Norfolk Souther Corporation has higher revenue and earnings than its rivals. Norfolk Souther Corporation 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.
Norfolk Souther Corporation pays an annual dividend of $2.44 per share and has a dividend yield of 1.8%. 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.
This table compares Norfolk Souther Corporation and its rivals’ 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||11.35%||15.43%||5.48%|
Risk and Volatility
Norfolk Souther Corporation has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Norfolk Souther Corporation’s rivals have a beta of 1.38, indicating that their average share price is 38% more volatile than the S&P 500.
Norfolk Souther Corporation rivals beat Norfolk Souther Corporation on 10 of the 15 factors compared.
Norfolk Souther Corporation Company Profile
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.
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