Lyft (NASDAQ:LYFT) and Norfolk Southern (NYSE:NSC) Critical Comparison

Norfolk Southern (NYSE:NSC) and Lyft (NASDAQ:LYFT) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Valuation & Earnings

This table compares Norfolk Southern and Lyft”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norfolk Southern	$12.18 billion	6.47	$2.87 billion	$11.72	29.93
Lyft	$6.77 billion	0.98	$2.84 billion	$6.88	2.54

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

Insider and Institutional Ownership

75.1% of Norfolk Southern shares are owned by institutional investors. Comparatively, 83.1% of Lyft shares are owned by institutional investors. 0.1% of Norfolk Southern shares are owned by company insiders. Comparatively, 0.9% of Lyft shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Norfolk Southern and Lyft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norfolk Southern	0	15	7	0	2.32
Lyft	2	22	13	0	2.30

Norfolk Southern presently has a consensus price target of $348.00, suggesting a potential downside of 0.79%. Lyft has a consensus price target of $19.80, suggesting a potential upside of 13.34%. Given Lyft’s higher probable upside, analysts clearly believe Lyft is more favorable than Norfolk Southern.

Volatility and Risk

Norfolk Southern has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Lyft has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Norfolk Southern	21.02%	18.21%	6.34%
Lyft	42.32%	-1.20%	-0.36%

Summary

Norfolk Southern beats Lyft on 8 of the 14 factors compared between the two stocks.

About Norfolk Southern

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; and operates an intermodal network. As of December 31, 2023, 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 Lyft

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.