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How Does CSX Compare to Its Peers?

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CSX and its peers

An analysis of CSX’s income statement in 3Q15 follows:

  • The net profit margins of CSX (CSX), Union Pacific (UNP), Norfolk Southern (NSC), J B Hunt Transport Services (JBHT), and Genesee & Wyoming (GWR) are 17.3%, 22.2%, 16%, 6.7%, and 9.7%, respectively.
  • The EPS (earnings per share) of CSX, Union Pacific, Norfolk Southern, J B Hunt, and Genesee & Wyoming are $0.52, $1.38, $1.43, $0.88, and $0.92, respectively.

An analysis of CSX’s valuation follows:

  • The PE (price-to-earnings) ratios of CSX, Union Pacific, Norfolk Southern, J B Hunt, and Genesee & Wyoming are 13.8x, 16.1x, 13.6x, 21x, and 15.6x, respectively.

  • The PBV (price-to-book value) ratios of CSX, Union Pacific, Norfolk Southern, J B Hunt, and Genesee & Wyoming are 2.4x, 3.9x, 2x, 6.3x, and 1.5x, respectively.

According to the above findings, the peers outperformed CSX based on the EPS and PE ratio. However, CSX is way ahead of its peers based on the net profit margin.

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ETFs that invest in CSX 

The iShares Transportation Average ETF (IYT) invests 2.3% of its holdings in CSX. IYT tracks a price-weighted index of transportation firms in the US equity market selected by the Dow Jones Average Committee.

The SPDR S&P Transportation ETF (XTN) invests 2.3% of its holdings in CSX. XTN is designed to track a broad-based, equal-weighted index of US stocks in the transportation industry.

The Industrial Select Sector SPDR Fund (XLI) invests 2% of its holdings in CSX. XLI tracks a market-cap-weighted index of industrial sector stocks drawn from the S&P 500.

Comparing CSX and its ETFs

An analysis of CSX’s price movement follows:

  • The YTD (year-to-date) price movements of CSX, IYT, XTN, and XLI are -22.2%, -8.8%, -56.1%, and -4.2%, respectively.

An analysis of CSX’s valuation follows:

  • The PE ratios of CSX, IYT, XTN, and XLI are 13.8x, 16.5, 17.8x, and 17.4x, respectively.
  • The PBV ratios of CSX, IYT, XTN, and XLI are 2.4x, 3.4x, 2.5x, and 3.4x, respectively.

The ETFs outperformed CSX based on the price movement, PE ratio, and PBV ratio.

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