Norfolk Southern (NYSE:NSC) and Guangshen Railway Co. Ltd ADR Class H (NYSE:GSH) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Risk & Volatility
Norfolk Southern has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Guangshen Railway Co. Ltd ADR Class H has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
Norfolk Southern pays an annual dividend of $3.20 per share and has a dividend yield of 1.9%. Guangshen Railway Co. Ltd ADR Class H pays an annual dividend of $0.54 per share and has a dividend yield of 2.8%. Norfolk Southern pays out 48.4% of its earnings in the form of a dividend. Norfolk Southern has raised its dividend for 8 consecutive years.
This is a summary of current recommendations for Norfolk Southern and Guangshen Railway Co. Ltd ADR Class H, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Guangshen Railway Co. Ltd ADR Class H||0||0||0||0||N/A|
Norfolk Southern presently has a consensus target price of $172.79, suggesting a potential upside of 0.23%. Given Norfolk Southern’s higher possible upside, analysts plainly believe Norfolk Southern is more favorable than Guangshen Railway Co. Ltd ADR Class H.
Valuation & Earnings
This table compares Norfolk Southern and Guangshen Railway Co. Ltd ADR Class H’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Norfolk Southern||$10.55 billion||4.45||$5.40 billion||$6.61||26.08|
|Guangshen Railway Co. Ltd ADR Class H||$2.82 billion||0.96||$156.05 million||N/A||N/A|
Norfolk Southern has higher revenue and earnings than Guangshen Railway Co. Ltd ADR Class H.
Institutional and Insider Ownership
74.4% of Norfolk Southern shares are owned by institutional investors. Comparatively, 0.7% of Guangshen Railway Co. Ltd ADR Class H shares are owned by institutional investors. 0.2% of Norfolk Southern shares are owned by company insiders. Comparatively, 71.4% of Guangshen Railway Co. Ltd ADR Class H shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Norfolk Southern and Guangshen Railway Co. Ltd ADR Class H’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Guangshen Railway Co. Ltd ADR Class H||5.54%||3.81%||3.20%|
Norfolk Southern beats Guangshen Railway Co. Ltd ADR Class H on 12 of the 15 factors compared between the two stocks.
Norfolk Southern Company Profile
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods. It also transports overseas freight through various Atlantic and Gulf Coast ports, as well as coal, automotive, and industrial products; and provides commuter passenger services. As of December 31, 2017, the company operated approximately 19,500 route miles in 22 states and the District of Columbia in the United States. Norfolk Southern Corporation was founded in 1883 and is based in Norfolk, Virginia.
Guangshen Railway Co. Ltd ADR Class H Company Profile
Guangshen Railway Company Limited engages in the railroad passenger and freight transportation business in the People's Republic of China. The company's passenger transportation services include the operation of Guangzhou-Shenzhen inter-city express trains, long-distance trains, and Guangzhou-Hong Kong city through trains. Its freight transportation services comprise the transportation of full load and single load cargo, containers, bulky and overweight cargo, dangerous cargo, fresh and live cargo, and oversized cargo. The company also provides railway network usage services; and other transportation-related services, such as railway operation, locomotive and passenger car leasing, passenger service, and luggage transportation services, as well as sells food, beverages, and merchandise on board the trains and in railway stations. In addition, it is involved in train repair, materials and supplies sale, on-board catering, goods sale, cargo loading and unloading, and other businesses related to railway transportation, as well as offers warehousing, hotel management, freight transport and packaging agency, and catering management services. Further, the company engages in property management and real estate construction activities; and the supervision of construction projects. As of December 31, 2017, it operated 251 pairs of passenger trains on a daily basis, including 107 pairs of intercity high-speed passenger trains between Guangzhou and Shenzhen, 13 pairs of Hong Kong Through Trains, and 131 pairs of long-distance trains. The company was founded in 1996 and is based in Shenzhen, the People's Republic of China.
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