Head-To-Head Analysis: Norfolk Southern (NYSE:NSC) vs. FTAI Infrastructure (NASDAQ:FIP)

Norfolk Southern (NYSE:NSC – Get Free Report) and FTAI Infrastructure (NASDAQ:FIP – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for Norfolk Southern and FTAI Infrastructure, as provided by MarketBeat.

Norfolk Southern presently has a consensus price target of $238.80, indicating a potential upside of 6.65%. Given Norfolk Southern’s higher probable upside, research analysts plainly believe Norfolk Southern is more favorable than FTAI Infrastructure.

Profitability

This table compares Norfolk Southern and FTAI Infrastructure’s net margins, return on equity and return on assets.

Volatility & Risk

Norfolk Southern has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, FTAI Infrastructure has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Institutional & Insider Ownership

72.4% of Norfolk Southern shares are owned by institutional investors. Comparatively, 78.3% of FTAI Infrastructure shares are owned by institutional investors. 0.2% of Norfolk Southern shares are owned by insiders. Comparatively, 0.8% of FTAI Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Norfolk Southern and FTAI Infrastructure’s revenue, earnings per share (EPS) and valuation.

Norfolk Southern has higher revenue and earnings than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than Norfolk Southern, indicating that it is currently the more affordable of the two stocks.

Dividends

Norfolk Southern pays an annual dividend of $5.40 per share and has a dividend yield of 2.4%. FTAI Infrastructure pays an annual dividend of $0.12 per share and has a dividend yield of 3.2%. Norfolk Southern pays out 59.2% of its earnings in the form of a dividend. FTAI Infrastructure pays out -6.3% 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. Norfolk Southern has increased its dividend for 3 consecutive years. FTAI Infrastructure is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Norfolk Southern beats FTAI Infrastructure on 11 of the 16 factors compared between the two stocks.

About Norfolk Southern

(Get Free Report)

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal. It also transports overseas freight through various Atlantic and Gulf Coast ports; provides commuter rail passenger transportation services; and operates an intermodal network. As of December 31, 2022, the company operated approximately 19,100 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is headquartered in Atlanta, Georgia.

About FTAI Infrastructure

(Get Free Report)

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation and energy industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates five freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.