Kansas City Southern (NYSE: KSU) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it weigh in compared to its competitors? We will compare Kansas City Southern to related companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, valuation, risk and dividends.

Dividends

Kansas City Southern pays an annual dividend of $1.44 per share and has a dividend yield of 1.3%. Kansas City Southern pays out 28.9% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.7% and pay out 36.0% of their earnings in the form of a dividend. Kansas City Southern has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Kansas City Southern and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kansas City Southern 0 10 7 0 2.41
Kansas City Southern Competitors 227 1372 1811 72 2.50

Kansas City Southern presently has a consensus price target of $103.92, suggesting a potential downside of 3.11%. As a group, “Ground Freight & Logistics” companies have a potential upside of 16.99%. Given Kansas City Southern’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Kansas City Southern has less favorable growth aspects than its competitors.

Risk & Volatility

Kansas City Southern has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Kansas City Southern’s competitors have a beta of 1.36, suggesting that their average share price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kansas City Southern and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kansas City Southern $2.47 billion $1.18 billion 21.54
Kansas City Southern Competitors $5.89 billion $1.72 billion -3.32

Kansas City Southern’s competitors have higher revenue and earnings than Kansas City Southern. Kansas City Southern is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Kansas City Southern and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kansas City Southern 21.52% 11.40% 5.68%
Kansas City Southern Competitors 11.40% 16.21% 5.66%

Institutional and Insider Ownership

84.5% of Kansas City Southern shares are held by institutional investors. Comparatively, 71.4% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 1.0% of Kansas City Southern shares are held by insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Kansas City Southern competitors beat Kansas City Southern on 10 of the 15 factors compared.

Kansas City Southern Company Profile

Kansas City Southern (KCS) is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, S.A. de C.V. (KCSM). KCSR serves a 10-state region in the midwest and southeast regions of the United States and has the north/south rail route between Kansas City, Missouri and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. KCSM operates a corridor of the Mexican railroad system. KCSM’s rail lines provide rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas. KCSM also provides rail access to the Port of Lazaro Cardenas on the Pacific Ocean.

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