WallStSmart

Norfolk Southern Corporation (NSC)vsFreightcar America Inc (RAIL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Norfolk Southern Corporation generates 2331% more annual revenue ($12.18B vs $500.99M). NSC leads profitability with a 23.6% profit margin vs 7.6%. RAIL appears more attractively valued with a PEG of 0.64. RAIL earns a higher WallStSmart Score of 53/100 (C-).

NSC

Buy

53

out of 100

Grade: C-

Growth: 2.0Profit: 8.0Value: 4.7Quality: 4.5
Piotroski: 4/9

RAIL

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NSCSignificantly Overvalued (-265.7%)

Margin of Safety

-265.7%

Fair Value

$86.77

Current Price

$282.61

$195.84 premium

UndervaluedFair: $86.77Overvalued
RAILUndervalued (+74.8%)

Margin of Safety

+74.8%

Fair Value

$51.01

Current Price

$8.16

$42.85 discount

UndervaluedFair: $51.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Market CapQuality
$63.70B9/10

Large-cap with strong market position

Profit MarginProfitability
23.6%9/10

Keeps 24 of every $100 in revenue as profit

RAIL2 strengths · Avg: 9.0/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Areas to Watch

NSC4 concerns · Avg: 2.0/10
PEG RatioValuation
3.852/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.7%2/10

Revenue declined 1.7%

EPS GrowthGrowth
-11.4%2/10

Earnings declined 11.4%

Free Cash FlowQuality
$-412.00M2/10

Negative free cash flow — burning cash

RAIL4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Market CapQuality
$153.78M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : NSC

The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.6% and operating margin at 31.2%.

Bull Case : RAIL

The strongest argument for RAIL centers on P/E Ratio, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bear Case : NSC

The primary concerns for NSC are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : RAIL

The primary concerns for RAIL are EPS Growth, Market Cap, Profit Margin.

Key Dynamics to Monitor

NSC profiles as a declining stock while RAIL is a value play — different risk/reward profiles.

RAIL carries more volatility with a beta of 1.51 — expect wider price swings.

NSC is growing revenue faster at -1.7% — sustainability is the question.

RAIL generates stronger free cash flow (9M), providing more financial flexibility.

Bottom Line

NSC scores higher overall (53/100 vs 53/100), backed by strong 23.6% margins. RAIL offers better value entry with a 74.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Norfolk Southern Corporation

INDUSTRIALS · RAILROADS · USA

The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.

Freightcar America Inc

INDUSTRIALS · RAILROADS · USA

FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.

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