WallStSmart

LB Foster Company (FSTR)vsNorfolk Southern Corporation (NSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Norfolk Southern Corporation generates 2146% more annual revenue ($12.54B vs $558.35M). NSC leads profitability with a 21.0% profit margin vs 2.0%. FSTR appears more attractively valued with a PEG of 0.80. NSC earns a higher WallStSmart Score of 59/100 (C).

FSTR

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 4.7Quality: 8.0
Piotroski: 5/9Altman Z: 3.54

NSC

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 8.0Value: 4.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FSTRSignificantly Overvalued (-16.0%)

Margin of Safety

-16.0%

Fair Value

$27.20

Current Price

$37.59

$10.39 premium

UndervaluedFair: $27.20Overvalued

Intrinsic value data unavailable for NSC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FSTR3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Market CapQuality
$71.94B9/10

Large-cap with strong market position

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

Areas to Watch

FSTR4 concerns · Avg: 3.3/10
P/E RatioValuation
34.8x4/10

Premium valuation, high expectations priced in

Market CapQuality
$387.97M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

NSC4 concerns · Avg: 2.8/10
P/E RatioValuation
27.3x4/10

Moderate valuation

Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.4%2/10

Earnings declined 4.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : FSTR

The strongest argument for FSTR centers on Altman Z-Score, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bull Case : NSC

The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 21.0% and operating margin at 35.3%. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : FSTR

The primary concerns for FSTR are P/E Ratio, Market Cap, Return on Equity. Thin 2.0% margins leave little buffer for downturns.

Bear Case : NSC

The primary concerns for NSC are P/E Ratio, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

FSTR profiles as a value stock while NSC is a mature play — different risk/reward profiles.

NSC carries more volatility with a beta of 1.27 — expect wider price swings.

NSC is growing revenue faster at 11.4% — sustainability is the question.

NSC generates stronger free cash flow (615M), providing more financial flexibility.

Bottom Line

NSC scores higher overall (59/100 vs 52/100), backed by strong 21.0% margins and 11.4% revenue growth. 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.

LB Foster Company

INDUSTRIALS · RAILROADS · USA

LB Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects globally. The company is headquartered in Pittsburgh, Pennsylvania.

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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.

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