Head to Head Analysis: YRC Worldwide (YRCW) vs. Norfolk Souther Corporation (NSC)
YRC Worldwide (NASDAQ: YRCW) and Norfolk Souther Corporation (NYSE:NSC) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Valuation and Earnings
This table compares YRC Worldwide and Norfolk Souther Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|YRC Worldwide||$4.80 billion||0.09||$254.10 million||($0.02)||-668.67|
|Norfolk Souther Corporation||$10.23 billion||3.49||$4.29 billion||$6.16||20.12|
Norfolk Souther Corporation has higher revenue and earnings than YRC Worldwide. YRC Worldwide is trading at a lower price-to-earnings ratio than Norfolk Souther Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
83.3% of YRC Worldwide shares are held by institutional investors. Comparatively, 70.6% of Norfolk Souther Corporation shares are held by institutional investors. 3.7% of YRC Worldwide shares are held by insiders. Comparatively, 0.4% of Norfolk Souther Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
YRC Worldwide has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500. Comparatively, Norfolk Souther Corporation has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
This table compares YRC Worldwide and Norfolk Souther Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Norfolk Souther Corporation||17.66%||14.45%||5.18%|
This is a summary of recent ratings for YRC Worldwide and Norfolk Souther Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Norfolk Souther Corporation||3||14||7||0||2.17|
YRC Worldwide presently has a consensus target price of $16.33, suggesting a potential upside of 22.07%. Norfolk Souther Corporation has a consensus target price of $109.80, suggesting a potential downside of 11.40%. Given YRC Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe YRC Worldwide is more favorable than Norfolk Souther Corporation.
Norfolk Souther Corporation pays an annual dividend of $2.44 per share and has a dividend yield of 2.0%. YRC Worldwide does not pay a dividend. Norfolk Souther Corporation pays out 39.6% of its earnings in the form of a dividend. YRC Worldwide has raised its dividend for 7 consecutive years.
Norfolk Souther Corporation beats YRC Worldwide on 9 of the 17 factors compared between the two stocks.
YRC Worldwide Company Profile
YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).
Norfolk Souther Corporation Company Profile
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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