NSC (Norfolk Southern Corp) vs S&P 500 Comparison

NSC

S&P 500

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NSC

S&P 500

Difference

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NSC

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

NSC

UNP

CNR

CSX

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Norfolk Southern Corp
Glance View

Economic Moat

None

Market Cap

53.6B USD

Industry

Road & Rail

Norfolk Southern Corporation, a titan of the American railway industry, has been weaving the tracks of commerce since its storied beginnings in 1982, though its roots trace back to the 19th century. Emerging from the merger of Southern Railway and Norfolk and Western Railway, the company stands as a principal artery in the vast network of U.S. freight rail, operating approximately 19,500 miles of track across 22 states in the eastern part of the country. With headquarters stationed in Atlanta, Georgia, Norfolk Southern has solidified its place as a crucial player in the transportation sector, heralding a blend of tradition and innovation. The company's operations aren't just limited to moving goods; they are about creating connections and enabling growth for countless communities and industries across its extensive route map. Earning a significant portion of its revenues from the transport of key industrial goods, Norfolk Southern moves a vast array of cargo, including coal, intermodal containers, automotive products, chemicals, and agricultural commodities. Intermodal transportation, which involves the movement of freight in an intermodal container or vehicle using multiple modes of transport, is a growing segment, capitalizing on the mounting demands for efficiency and sustainability in logistics. By facilitating shipments across vast distances with precision and reliability, the company not only derives revenues from freight service fees but also from leasing equipment and providing ancillary services. This multifaceted approach enables Norfolk Southern to remain agile in an ever-evolving industrial landscape, maintaining its robust financial health while continuing to play a pivotal role in propelling the nation's economic engine.

View NSC Analysis

NSC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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NSC

vs

S&P 500

Stocks Performance
NSC vs S&P 500

Performance Gap
NSC vs S&P 500

Performance By Year
NSC vs S&P 500

Competitors Performance
Norfolk Southern Corp vs Peers

Norfolk Southern Corp
Glance View

Company

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US		Union Pacific Corp NYSE:UNP	Add
CA		Canadian Pacific Railway Ltd TSX:CP	Add
CA		Canadian National Railway Co TSX:CNR	Add
US		CSX Corp NASDAQ:CSX	Add
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Add
US	K	Kansas City Southern LSE:0JQ4	Add
HK		MTR Corp Ltd HKEX:66	Add
JP		East Japan Railway Co TSE:9020	Add
JP		Central Japan Railway Co TSE:9022	Add
CN		Daqin Railway Co Ltd SSE:601006	Add

US		Union Pacific Corp NYSE:UNP	Select
CA		Canadian Pacific Railway Ltd TSX:CP	Select
CA		Canadian National Railway Co TSX:CNR	Select
US		CSX Corp NASDAQ:CSX	Select
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Select
US	K	Kansas City Southern LSE:0JQ4	Select
HK		MTR Corp Ltd HKEX:66	Select
JP		East Japan Railway Co TSE:9020	Select
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CN		Daqin Railway Co Ltd SSE:601006	Select

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NSC vs S&P 500

Stocks Performance NSC vs S&P 500

Performance Gap NSC vs S&P 500

Performance By Year NSC vs S&P 500

Competitors Performance Norfolk Southern Corp vs Peers

Norfolk Southern Corp Glance View

Company

Help

Tools

Stocks

NSC

vs

S&P 500

Stocks Performance
NSC vs S&P 500

Performance Gap
NSC vs S&P 500

Performance By Year
NSC vs S&P 500

Competitors Performance
Norfolk Southern Corp vs Peers

Norfolk Southern Corp
Glance View