Kansas City Southern (KSU) and Its Rivals Critical Review

Kansas City Southern (NYSE: KSU) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it weigh in compared to its peers? We will compare Kansas City Southern to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.

Profitability

This table compares Kansas City Southern and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kansas City Southern 21.52% 11.40% 5.68%
Kansas City Southern Competitors 10.86% 15.03% 5.33%

Earnings and Valuation

This table compares Kansas City Southern and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kansas City Southern $2.47 billion $1.18 billion 21.18
Kansas City Southern Competitors $5.92 billion $1.74 billion -4.12

Kansas City Southern’s peers have higher revenue and earnings than Kansas City Southern. Kansas City Southern is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Kansas City Southern has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Kansas City Southern’s peers have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Kansas City Southern and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kansas City Southern 0 8 9 0 2.53
Kansas City Southern Competitors 183 1296 1799 70 2.52

Kansas City Southern currently has a consensus target price of $107.71, indicating a potential upside of 2.14%. As a group, “Ground Freight & Logistics” companies have a potential upside of 9.72%. Given Kansas City Southern’s peers higher probable upside, analysts plainly believe Kansas City Southern has less favorable growth aspects than its peers.

Insider and Institutional Ownership

84.6% of Kansas City Southern shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are owned by institutional investors. 1.0% of Kansas City Southern shares are owned by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Kansas City Southern pays an annual dividend of $1.44 per share and has a dividend yield of 1.4%. Kansas City Southern pays out 28.9% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.6% and pay out 36.3% of their earnings in the form of a dividend. Kansas City Southern has raised its dividend for 3 consecutive years.

Summary

Kansas City Southern peers beat Kansas City Southern on 9 of the 15 factors compared.

About Kansas City Southern

Kansas City Southern (KCS) is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, S.A. de C.V. (KCSM). KCSR serves a 10-state region in the midwest and southeast regions of the United States and has the north/south rail route between Kansas City, Missouri and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. KCSM operates a corridor of the Mexican railroad system. KCSM’s rail lines provide rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas. KCSM also provides rail access to the Port of Lazaro Cardenas on the Pacific Ocean.

Receive News & Ratings for Kansas City Southern Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kansas City Southern and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

How to Trade on Forex – 8 Steps for Beginners
How to Trade on Forex – 8 Steps for Beginners
Super Nintendo World Theme Park Officially Starts Construction
Super Nintendo World Theme Park Officially Starts Construction
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Camera Zooms In and Can Recognize Faces
Camera Zooms In and Can Recognize Faces
Netflix Could See 150 Million Worldwide Subscribers
Netflix Could See 150 Million Worldwide Subscribers
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back


Leave a Reply

© 2006-2017 Ticker Report. Google+.