uploads/2015/10/ksu-pe.jpg

How Does Kansas City Southern Compare to Its Peers?

By

Updated

Kansas City Southern and its peers

An analysis of Kansas City Southern and its peers follows:

  • The PE (price-to-earnings) ratios of Kansas City Southern (KSU), Union Pacific (UNP), CSX (CSX), Norfolk Southern (NSC), and Genesee & Wyoming (GWR) are 19.86x, 16.0x, 13.65x, 13.42x, and 15.50x, respectively.

  • The PBV (price-to-book value) ratios of Kansas City Southern, Union Pacific, CSX, Norfolk Southern, and Genesee & Wyoming are 2.48x, 3.86x, 2.31x, 1.97x, and 1.48x, respectively.
  • The EPS (earnings per share) of Kansas City Southern and CSX are $1.20 and $0.52, respectively, in 3Q15.

As a result, Kansas City Southern is way ahead of its peers based on the PE ratio and EPS.

Article continues below advertisement

ETFs that invest in Kansas City Southern

The iShares Transportation Average ETF (IYT) invests 7.1% of its holdings in Kansas City Southern. IYT tracks a price-weighted index of transportation firms in the US equity market. They’re selected by the Dow Jones Average Committee.

The SPD S&P Transportation ETF (XTN) invests 2.5% of its holdings in Kansas City Southern. XTN is designed to track a broad-based, equal-weighted index of US stocks in the transportation industry.

The Guggenheim S&P Equal Weight Industrials ETF (RGI) invests 1.3% of its holdings in Kansas City Southern. RGI tracks an equal-weighted index of US industrials stocks drawn from the S&P 500.

Comparing Kansas City Southern and its ETFs

An analysis of Kansas City and its ETFs follows:

  • The YTD (year-to-date) price movements of Kansas City Southern, IYT, XTN, and RGI are -27.7%, -9.3%, -56.4%, and -6.5%, respectively.
  • The PE ratios of Kansas City Southern, IYT, XTN, and RGI are 19.86x, 16.91x, 18.54x, and 15.36x, respectively.
  • The PBV ratios of Kansas City Southern, IYT, XTN, and RGI are 2.48x, 3.45x, 2.50x, and 3.03x, respectively.

According to the above findings, the ETFs outperformed Kansas City Southern based on the price movement and PBV ratio. However, Kansas City Southern is way ahead of its ETFs based on the PE ratio.

Advertisement

More From Market Realist