Schneider National (SNDR) & CSX (CSX) Financial Survey

CSX (NASDAQ: CSX) and Schneider National (NYSE:SNDR) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Earnings & Valuation

This table compares CSX and Schneider National’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSX $11.41 billion 4.34 $5.47 billion $2.15 25.97
Schneider National $4.38 billion 1.09 $389.90 million $0.91 29.63

CSX has higher revenue and earnings than Schneider National. CSX is trading at a lower price-to-earnings ratio than Schneider National, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CSX and Schneider National, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSX 2 6 15 0 2.57
Schneider National 1 3 7 0 2.55

CSX presently has a consensus price target of $59.48, suggesting a potential upside of 6.51%. Schneider National has a consensus price target of $29.25, suggesting a potential upside of 8.49%. Given Schneider National’s higher possible upside, analysts plainly believe Schneider National is more favorable than CSX.

Profitability

This table compares CSX and Schneider National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSX 47.96% 17.16% 5.87%
Schneider National 8.89% 10.98% 5.07%

Insider and Institutional Ownership

69.5% of CSX shares are held by institutional investors. Comparatively, 21.0% of Schneider National shares are held by institutional investors. 4.8% of CSX shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

CSX pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Schneider National pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. CSX pays out 37.2% of its earnings in the form of a dividend. Schneider National pays out 22.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

CSX beats Schneider National on 12 of the 15 factors compared between the two stocks.

About CSX

CSX Corporation is a transportation company. The Company provides rail-based freight transportation services, including traditional rail service and transport of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. The Company categorizes its products into three primary lines of business: merchandise, intermodal and coal. The Company’s intermodal business links customers to railroads through trucks and terminals. The Company’s merchandise business consists of shipments in markets, such as agricultural and food products, fertilizers, chemicals, automotive, metals and equipment, minerals and forest products. The Company’s coal business transports domestic coal, coke and iron ore to electricity-generating power plants, steel manufacturers and industrial plants, as well as export coal to deep-water port facilities.

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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