Norfolk Southern Corporation (NSC) vs Freightcar America, Inc. (RAIL)

Norfolk Southern Corporation and Freightcar America, Inc. are both Railroads companies. Norfolk Southern Corporation is the larger, with a market value of $70.3B against $243.3M — 289.1× the size. Freightcar America, Inc. has negative trailing earnings, so its P/E is not meaningful; Norfolk Southern Corporation trades at 26.7×. Norfolk Southern Corporation grew revenue faster over the last twelve months: 2.97% against −0.50%. Norfolk Southern Corporation has the higher net margin (21.0% vs −2.69%) and the lower return on invested capital (7.93% vs 14.8%). Across the 21 metrics below, Freightcar America, Inc. leads on 11 and Norfolk Southern Corporation on 10.

Valuation

Metric NSC RAIL Railroads median
P/E 26.73 n/m 26.88
P/S 5.61 0.49 2.58
P/B 4.33 6.33 4.33
Price to free cash flow 36.91 12.81 26.65
EV/EBITDA 15.77 10.98 13.50
EV/Sales 6.85 0.58 4.56
Earnings yield 3.74% (5.85%) 3.59%
Free cash flow yield 2.71% 7.81% 3.41%

Profitability

Metric NSC RAIL Railroads median
Gross margin 68.79% 12.50% 30.61%
Operating margin 32.19% 3.77% 24.29%
Net margin 21.00% (2.69%) 10.59%
Free cash flow margin 15.20% 3.86% 8.43%
Return on equity 16.97% 52.80% 11.49%
Return on assets 5.90% (4.13%) 3.98%
Return on invested capital 7.93% 14.75% 7.59%

Growth

Metric NSC RAIL Railroads median
Revenue growth (TTM) 2.97% (0.50%) 2.97%
EPS growth (last fiscal year) 10.20% 144.18% —
Revenue growth, 5-year CAGR 4.47% 35.81% 5.27%
Net income growth, 5-year CAGR 7.38% 0.00% 0.88%

Health

Metric NSC RAIL Railroads median
Debt to equity 1.02 2.78 0.58
Current ratio 0.83 1.81 1.03
Net debt to EBITDA 2.71 1.07 2.71

Dividend

Metric NSC RAIL Railroads median
Dividend yield 2.19% — 2.17%
Payout ratio 0.47 0.00 0.19

Size

Metric NSC RAIL Railroads median
Market cap 70.34b 243.31m 2.22b

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