Financial Analysis: Schneider National (SNDR) & Norfolk Souther Corporation (NSC)

Schneider National (NASDAQ: SNDR) and Norfolk Souther Corporation (NYSE:NSC) are both mid-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares Schneider National and Norfolk Souther Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Schneider National $4.20 billion 1.03 $544.67 million N/A N/A
Norfolk Souther Corporation $10.23 billion 3.69 $4.29 billion $6.16 21.26

Norfolk Souther Corporation has higher revenue and earnings than Schneider National.

Institutional and Insider Ownership

70.6% of Norfolk Souther Corporation shares are owned by institutional investors. 0.4% of Norfolk Souther Corporation shares 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.

Analyst Recommendations

This is a breakdown of current ratings for Schneider National and Norfolk Souther Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schneider National 0 2 7 0 2.78
Norfolk Souther Corporation 3 12 7 0 2.18

Schneider National currently has a consensus target price of $22.43, suggesting a potential downside of 8.00%. Norfolk Souther Corporation has a consensus target price of $112.15, suggesting a potential downside of 14.38%. Given Schneider National’s stronger consensus rating and higher possible upside, research analysts plainly believe Schneider National is more favorable than Norfolk Souther Corporation.

Dividends

Norfolk Souther Corporation pays an annual dividend of $2.44 per share and has a dividend yield of 1.9%. Schneider National does not pay a dividend. Norfolk Souther Corporation pays out 39.6% of its earnings in the form of a dividend. Norfolk Souther Corporation has raised its dividend for 7 consecutive years.

Profitability

This table compares Schneider National and Norfolk Souther Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schneider National 4.32% 13.37% 5.98%
Norfolk Souther Corporation 17.66% 14.45% 5.18%

Summary

Norfolk Souther Corporation beats Schneider National on 10 of the 14 factors compared between the two stocks.

About Schneider National

Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.

About Norfolk Souther Corporation

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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