Contrasting U-Haul (NYSE:UHAL) & Norfolk Southern (NYSE:NSC)

Norfolk Southern (NYSE:NSC) and U-Haul (NYSE:UHAL) are both large-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

75.1% of Norfolk Southern shares are held by institutional investors. Comparatively, 3.6% of U-Haul shares are held by institutional investors. 0.1% of Norfolk Southern shares are held by insiders. Comparatively, 43.8% of U-Haul shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Norfolk Southern and U-Haul, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norfolk Southern	0	14	7	0	2.33
U-Haul	1	0	1	0	2.00

Norfolk Southern currently has a consensus target price of $348.81, indicating a potential upside of 6.41%. U-Haul has a consensus target price of $90.00, indicating a potential upside of 60.19%. Given U-Haul’s higher possible upside, analysts clearly believe U-Haul is more favorable than Norfolk Southern.

Profitability

This table compares Norfolk Southern and U-Haul’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norfolk Southern	20.70%	18.22%	6.46%
U-Haul	1.54%	1.21%	0.44%

Earnings & Valuation

This table compares Norfolk Southern and U-Haul”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norfolk Southern	$12.18 billion	6.05	$2.87 billion	$11.93	27.48
U-Haul	$6.04 billion	1.81	$83.13 million	$0.31	181.24

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

Risk & Volatility

Norfolk Southern has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, U-Haul has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Summary

Norfolk Southern beats U-Haul on 11 of the 14 factors compared between the two stocks.

About Norfolk Southern

Norfolk Southern Corporation is a freight transportation company that operates a major railroad network across the eastern United States. Its rail services connect businesses, ports and communities, and link with other railroads to move goods across North America. The company transports a broad range of products, including coal, chemicals, agricultural goods, automotive vehicles and parts, metals, construction materials and consumer products. Its services include intermodal transportation, which combines rail with truck or container shipping, as well as rail freight and logistics solutions.

About U-Haul

U-Haul Holding Company, formerly known as AMERCO, is a moving and storage company best known for its U-Haul brand. Its services include do-it-yourself truck and trailer rentals, towing equipment, self-storage, and moving supplies. The company also offers U-Box portable storage and moving containers. Founded in 1945 by Leonard Shoen, U-Haul serves customers across the United States and Canada through company-operated locations and independent dealers. Its operations also include related insurance and life-insurance businesses.