Proficient Auto Logistics (NASDAQ:PAL) & Norfolk Southern (NYSE:NSC) Critical Review

Norfolk Southern (NYSE:NSC) and Proficient Auto Logistics (NASDAQ:PAL) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

75.1% of Norfolk Southern shares are owned by institutional investors. 0.1% of Norfolk Southern shares are owned by company insiders. Comparatively, 14.2% of Proficient Auto Logistics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Norfolk Southern and Proficient Auto Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norfolk Southern	21.02%	18.21%	6.34%
Proficient Auto Logistics	-8.57%	0.25%	0.17%

Analyst Ratings

This is a breakdown of current ratings and target prices for Norfolk Southern and Proficient Auto Logistics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norfolk Southern	0	15	7	0	2.32
Proficient Auto Logistics	1	2	2	0	2.20

Norfolk Southern currently has a consensus price target of $348.00, suggesting a potential upside of 3.60%. Proficient Auto Logistics has a consensus price target of $10.00, suggesting a potential upside of 46.20%. Given Proficient Auto Logistics’ higher possible upside, analysts clearly believe Proficient Auto Logistics is more favorable than Norfolk Southern.

Volatility & Risk

Norfolk Southern has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Proficient Auto Logistics has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Norfolk Southern and Proficient Auto Logistics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norfolk Southern	$12.18 billion	6.19	$2.87 billion	$11.72	28.66
Proficient Auto Logistics	$428.91 million	0.44	-$36.02 million	($1.33)	-5.14

Norfolk Southern has higher revenue and earnings than Proficient Auto Logistics. Proficient Auto Logistics is trading at a lower price-to-earnings ratio than Norfolk Southern, indicating that it is currently the more affordable of the two stocks.

Summary

Norfolk Southern beats Proficient Auto Logistics on 11 of the 13 factors compared between the two stocks.

About Norfolk Southern

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal. It also transports overseas freight through various Atlantic and Gulf Coast ports; and operates an intermodal network. As of December 31, 2023, the company operated approximately 19,100 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is headquartered in Atlanta, Georgia.

About Proficient Auto Logistics

Proficient Auto Logistics, Inc. focuses on providing auto transportation and logistics services in North America. It primarily focuses on transporting and delivering finished vehicles from automotive production facilities, ports of entry, and rail yards to a network of automotive dealerships. The company operates approximately 1,130 auto transport vehicles and trailers, including 615 company-owned transport vehicles and trailers. It serves auto companies, electric vehicle producers, auto dealers, auto auctions, rental car companies, and auto leasing companies. The company was formerly known as AH Acquisition Corp. and changed its name to Proficient Auto Logistics, Inc. in October 2023. The company was incorporated in 2023 and is based in Jacksonville, Florida.