Norfolk Southern Corporation (NSC) vs Trinity Industries, Inc. (TRN)

Norfolk Southern Corporation and Trinity Industries, Inc. are both Railroads companies. Norfolk Southern Corporation is the larger, with a market value of $70.3B against $2.2B — 31.7× the size. Trinity Industries, Inc. trades at the lower P/E: 6.6× against 26.7×. Norfolk Southern Corporation grew revenue faster over the last twelve months: 2.97% against −19.0%. Norfolk Southern Corporation has the higher net margin (21.0% vs 16.6%) and the higher return on invested capital (7.93% vs 7.59%). Both pay a dividend; Trinity Industries, Inc. yields more (4.08% vs 2.19%). Across the 22 metrics below, Norfolk Southern Corporation leads on 11 and Trinity Industries, Inc. on 11.

Valuation

Metric NSC TRN Railroads median
P/E 26.73 6.57 26.88
P/S 5.61 1.09 2.58
P/B 4.33 1.94 4.33
Price to free cash flow 36.91 n/m 26.65
EV/EBITDA 15.77 6.91 13.50
EV/Sales 6.85 3.57 4.56
Earnings yield 3.74% 15.23% 3.59%
Free cash flow yield 2.71% (15.20%) 3.41%

Profitability

Metric NSC TRN Railroads median
Gross margin 68.79% 26.24% 30.61%
Operating margin 32.19% 36.96% 24.29%
Net margin 21.00% 16.62% 10.59%
Free cash flow margin 15.20% (16.53%) 8.43%
Return on equity 16.97% 28.24% 11.49%
Return on assets 5.90% 3.98% 3.98%
Return on invested capital 7.93% 7.59% 7.59%

Growth

Metric NSC TRN Railroads median
Revenue growth (TTM) 2.97% (18.95%) 2.97%
EPS growth (last fiscal year) 10.20% 85.98% —
Revenue growth, 5-year CAGR 4.47% 4.27% 5.27%
Net income growth, 5-year CAGR 7.38% 0.00% 0.88%

Health

Metric NSC TRN Railroads median
Debt to equity 1.02 4.56 0.58
Current ratio 0.83 1.89 1.03
Net debt to EBITDA 2.71 5.49 2.71

Dividend

Metric NSC TRN Railroads median
Dividend yield 2.19% 4.08% 2.17%
Payout ratio 0.47 0.88 0.19

Size

Metric NSC TRN Railroads median
Market cap 70.34b 2.22b 2.22b

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