WallStSmart

Norfolk Southern Corporation (NSC)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 206% more annual revenue ($37.30B vs $12.19B). NSC leads profitability with a 21.9% profit margin vs 1.9%. NSC appears more attractively valued with a PEG of 4.72. NSC earns a higher WallStSmart Score of 55/100 (C).

NSC

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 4/9

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NSC.

WBDUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$71.08

Current Price

$27.11

$43.97 discount

UndervaluedFair: $71.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

Market CapQuality
$70.39B9/10

Large-cap with strong market position

Profit MarginProfitability
21.9%9/10

Keeps 22 of every $100 in revenue as profit

WBD3 strengths · Avg: 9.0/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.99B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

NSC4 concerns · Avg: 3.0/10
P/E RatioValuation
26.4x4/10

Moderate valuation

Revenue GrowthGrowth
0.2%4/10

0.2% revenue growth

PEG RatioValuation
4.722/10

Expensive relative to growth rate

EPS GrowthGrowth
-26.6%2/10

Earnings declined 26.6%

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

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 21.9% and operating margin at 32.3%.

Bull Case : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : NSC

The primary concerns for NSC are P/E Ratio, Revenue Growth, PEG Ratio.

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

WBD carries more volatility with a beta of 1.57 — expect wider price swings.

NSC is growing revenue faster at 0.2% — sustainability is the question.

NSC generates stronger free cash flow (-38M), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NSC scores higher overall (55/100 vs 51/100), backed by strong 21.9% margins. WBD offers better value entry with a 60.6% 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.

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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