WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Norfolk Southern Corporation generates 2605% more annual revenue ($12.54B vs $463.52M). NSC leads profitability with a 21.0% profit margin vs -2.7%. RAIL appears more attractively valued with a PEG of 0.64. NSC earns a higher WallStSmart Score of 59/100 (C).

NSC

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 8.0Value: 4.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.30

RAIL

Avoid

32

out of 100

Grade: F

Growth: 4.0Profit: 3.0Value: 6.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.23

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Market CapQuality
$71.94B9/10

Large-cap with strong market position

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

RAIL1 strengths · Avg: 8.0/10
PEG RatioValuation
0.648/10

Growing faster than its price suggests

Areas to Watch

NSC4 concerns · Avg: 2.8/10
P/E RatioValuation
27.3x4/10

Moderate valuation

Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.4%2/10

Earnings declined 4.4%

RAIL4 concerns · Avg: 2.3/10
Market CapQuality
$232.82M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-24.2%2/10

Earnings declined 24.2%

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 21.0% and operating margin at 35.3%. Revenue growth of 11.4% demonstrates continued momentum.

Bull Case : RAIL

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

Bear Case : NSC

The primary concerns for NSC are P/E Ratio, Debt/Equity, PEG Ratio.

Bear Case : RAIL

The primary concerns for RAIL are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 4.00 is elevated, increasing financial risk.

Key Dynamics to Monitor

NSC profiles as a mature stock while RAIL is a turnaround play — different risk/reward profiles.

RAIL carries more volatility with a beta of 1.46 — expect wider price swings.

NSC is growing revenue faster at 11.4% — sustainability is the question.

NSC generates stronger free cash flow (615M), providing more financial flexibility.

Bottom Line

NSC scores higher overall (59/100 vs 32/100), backed by strong 21.0% margins and 11.4% revenue growth. Both earn "Buy" and "Avoid" 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.

Want to dig deeper into these stocks?