CSX vs NSC

For growth investors, Norfolk Southern Corporation (NSC) is the stronger pick with 0.

5% revenue growth year-over-year, versus -3. 1% for CSX Corporation (CSX). Norfolk Southern Corporation (NSC) offers the better valuation at 24. 9x trailing P/E (26. 2x forward), making it the more compelling value choice. Analysts rate CSX Corporation (CSX) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Norfolk Southern Corporation (NSC) is the cheapest at 24.

9x versus CSX Corporation at 29. 6x. On forward P/E, CSX Corporation is actually cheaper at 24. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Norfolk Southern Corporation wins at 2. 57x versus CSX Corporation's 4. 69x.

Over the past 5 years, CSX Corporation (CSX) delivered a total return of +39.

9%, compared to +19. 5% for Norfolk Southern Corporation (NSC). Over 10 years, the gap is even starker: CSX returned +465. 7% versus NSC's +299. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Norfolk Southern Corporation (NSC) is the lower-risk stock at 0.

63β versus CSX Corporation's 0. 77β — meaning CSX is approximately 21% more volatile than NSC relative to the S&P 500. On balance sheet safety, Norfolk Southern Corporation (NSC) carries a lower debt/equity ratio of 110% versus 147% for CSX Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Norfolk Southern Corporation (NSC) is pulling ahead at 0.

5% versus -3. 1% for CSX Corporation (CSX). On earnings-per-share growth, the picture is similar: Norfolk Southern Corporation grew EPS 10. 2% year-over-year, compared to -14. 0% for CSX Corporation. Over a 3-year CAGR, NSC leads at -1. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Norfolk Southern Corporation (NSC) is the more profitable company, earning 23.

6% net margin versus 20. 5% for CSX Corporation — meaning it keeps 23. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NSC leads at 32. 9% versus 32. 1% for CSX. At the gross margin level — before operating expenses — NSC leads at 42. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Norfolk Southern Corporation (NSC) is the more undervalued stock at a PEG of 2. 57x versus CSX Corporation's 4. 69x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, CSX Corporation (CSX) trades at 24. 0x forward P/E versus 26. 2x for Norfolk Southern Corporation — 2. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NSC: 4. 6% to $332. 00.

All stocks in this comparison pay dividends.

Norfolk Southern Corporation (NSC) offers the highest yield at 1. 7%, versus 1. 1% for CSX Corporation (CSX).

For long-horizon retirement investors, Norfolk Southern Corporation (NSC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

63), 1. 7% yield, +299. 2% 10Y return). Both have compounded well over 10 years (NSC: +299. 2%, CSX: +465. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.