Norfolk Southern Corporation (NSC) vs Wabtec (WAB)

Norfolk Southern Corporation and Wabtec are both Railroads companies. Norfolk Southern Corporation is the larger, with a market value of $70.3B against $49.0B — 1.4× the size. Norfolk Southern Corporation trades at the lower P/E: 26.7× against 38.6×. Wabtec grew revenue faster over the last twelve months: 13.4% against 2.97%. Norfolk Southern Corporation has the higher net margin (21.0% vs 10.6%) and the higher return on invested capital (7.93% vs 7.16%). Both pay a dividend; Norfolk Southern Corporation yields more (2.19% vs 0.50%). Across the 23 metrics below, Norfolk Southern Corporation leads on 12 and Wabtec on 11.

Valuation

Metric NSC WAB Railroads median
P/E 26.73 38.64 26.88
P/S 5.61 4.06 2.58
P/B 4.33 4.33 4.33
Price to free cash flow 36.91 28.32 26.65
EV/EBITDA 15.77 22.12 13.50
EV/Sales 6.85 4.56 4.56
Earnings yield 3.74% 2.59% 3.59%
Free cash flow yield 2.71% 3.53% 3.41%

Profitability

Metric NSC WAB Railroads median
Gross margin 68.79% 34.97% 30.61%
Operating margin 32.19% 16.39% 24.29%
Net margin 21.00% 10.59% 10.59%
Free cash flow margin 15.20% 14.35% 8.43%
Return on equity 16.97% 11.49% 11.49%
Return on assets 5.90% 5.83% 3.98%
Return on invested capital 7.93% 7.16% 7.59%

Growth

Metric NSC WAB Railroads median
Revenue growth (TTM) 2.97% 13.43% 2.97%
EPS growth (last fiscal year) 10.20% 13.08% —
Revenue growth, 5-year CAGR 4.47% 8.13% 5.27%
Net income growth, 5-year CAGR 7.38% 23.09% 0.88%

Health

Metric NSC WAB Railroads median
Debt to equity 1.02 0.58 0.58
Current ratio 0.83 1.12 1.03
Net debt to EBITDA 2.71 2.11 2.71

Dividend

Metric NSC WAB Railroads median
Dividend yield 2.19% 0.50% 2.17%
Payout ratio 0.47 0.17 0.19

Size

Metric NSC WAB Railroads median
Market cap 70.34b 49.02b 2.22b

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