CSX Corporation (CSX) vs Norfolk Southern Corporation (NSC)

CSX Corporation and Norfolk Southern Corporation are both Railroads companies. CSX Corporation is the larger, with a market value of $90.2B against $73.0B — 1.2× the size. Norfolk Southern Corporation trades at the lower P/E: 27.9× against 28.1×. Norfolk Southern Corporation grew revenue faster over the last twelve months: 2.97% against 2.52%. CSX Corporation has the higher net margin (22.2% vs 21.0%) and the higher return on invested capital (9.81% vs 7.93%). Both pay a dividend; Norfolk Southern Corporation yields more (1.65% vs 1.13%). Across the 23 metrics below, Norfolk Southern Corporation leads on 12 and CSX Corporation on 11.

Valuation

Metric CSX NSC Railroads median
P/E 28.14 27.89 27.91
P/S 6.22 5.86 2.52
P/B 6.41 4.52 4.31
Price to free cash flow 30.49 38.52 27.29
EV/EBITDA 15.91 16.33 13.42
EV/Sales 7.43 7.10 4.54
Earnings yield 3.55% 3.58% 3.55%
Free cash flow yield 3.28% 2.60% 3.28%

Profitability

Metric CSX NSC Railroads median
Gross margin 69.37% 68.79% 30.61%
Operating margin 34.15% 32.19% 24.29%
Net margin 22.21% 21.00% 10.59%
Free cash flow margin 20.41% 15.20% 8.43%
Return on equity 24.36% 16.97% 11.49%
Return on assets 7.35% 5.90% 3.98%
Return on invested capital 9.81% 7.93% 7.59%

Growth

Metric CSX NSC Railroads median
Revenue growth (TTM) 2.52% 2.97% 2.97%
EPS growth (last fiscal year) (13.97%) 10.20% 13.08%
Revenue growth, 5-year CAGR 5.89% 4.47% 5.27%
Net income growth, 5-year CAGR 0.88% 7.38% 0.88%

Health

Metric CSX NSC Railroads median
Debt to equity 1.34 1.02 0.58
Current ratio 0.82 0.83 1.01
Net debt to EBITDA 2.86 2.71 2.71

Dividend

Metric CSX NSC Railroads median
Dividend yield 1.13% 1.65% 1.65%
Payout ratio 0.32 0.46 0.32

Size

Metric CSX NSC Railroads median
Market cap 90.20b 72.96b 2.03b

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