WallStSmart

Norfolk Southern Corporation (NSC)vsTrinity Industries Inc (TRN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Norfolk Southern Corporation generates 514% more annual revenue ($12.54B vs $2.04B). NSC leads profitability with a 21.0% profit margin vs 16.6%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 75/100 (B).

NSC

Buy

59

out of 100

Grade: C

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

TRN

Strong Buy

75

out of 100

Grade: B

Growth: 5.3Profit: 6.5Value: 6.7Quality: 5.0
Piotroski: 6/9Altman Z: 0.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NSC.

TRNSignificantly Overvalued (-79.2%)

Margin of Safety

-79.2%

Fair Value

$17.68

Current Price

$25.54

$7.86 premium

UndervaluedFair: $17.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Strong operational efficiency at 35.3%

Market CapQuality
$70.75B9/10

Large-cap with strong market position

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

TRN5 strengths · Avg: 9.0/10
P/E RatioValuation
6.6x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
620.0%10/10

Earnings expanding 620.0% YoY

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

NSC4 concerns · Avg: 2.8/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.712/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.4%2/10

Earnings declined 4.4%

TRN4 concerns · Avg: 1.8/10
Revenue GrowthGrowth
-4.2%2/10

Revenue declined 4.2%

Free Cash FlowQuality
$-32.10M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

Debt/EquityHealth
4.571/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : TRN

The strongest argument for TRN centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 16.6% and operating margin at 12.1%. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bear Case : NSC

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

Bear Case : TRN

The primary concerns for TRN are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.57 is elevated, increasing financial risk.

Key Dynamics to Monitor

NSC profiles as a mature stock while TRN is a declining play — different risk/reward profiles.

TRN carries more volatility with a beta of 1.34 — 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

TRN scores higher overall (75/100 vs 59/100), backed by strong 16.6% margins. Both earn "Strong 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.

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.

Trinity Industries Inc

INDUSTRIALS · RAILROADS · USA

Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.

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