Comparing Kansas City Southern (KSU) and Schneider National (SNDR)
Kansas City Southern (NYSE: KSU) and Schneider National (NASDAQ:SNDR) are both mid-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
This table compares Kansas City Southern and Schneider National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kansas City Southern||21.42%||11.86%||5.88%|
Insider and Institutional Ownership
85.8% of Kansas City Southern shares are held by institutional investors. 1.0% of Kansas City Southern shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Kansas City Southern pays an annual dividend of $1.44 per share and has a dividend yield of 1.4%. Schneider National does not pay a dividend. Kansas City Southern pays out 28.3% of its earnings in the form of a dividend. Schneider National has raised its dividend for 3 consecutive years.
Earnings and Valuation
This table compares Kansas City Southern and Schneider National’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kansas City Southern||$2.47 billion||4.37||$1.18 billion||$5.09||20.48|
|Schneider National||$4.20 billion||1.10||$544.67 million||N/A||N/A|
Kansas City Southern has higher revenue, but lower earnings than Schneider National.
This is a breakdown of recent ratings for Kansas City Southern and Schneider National, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kansas City Southern||0||8||9||0||2.53|
Kansas City Southern presently has a consensus target price of $112.43, indicating a potential upside of 7.88%. Schneider National has a consensus target price of $24.00, indicating a potential downside of 8.36%. Given Kansas City Southern’s higher possible upside, research analysts plainly believe Kansas City Southern is more favorable than Schneider National.
Kansas City Southern beats Schneider National on 9 of the 15 factors compared between the two stocks.
About Kansas City Southern
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.
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.
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