Head-To-Head Contrast: CSX (NASDAQ:CSX) and Guangshen Railway Co. Ltd ADR Class H (GSH)

Guangshen Railway Co. Ltd ADR Class H (NYSE:GSH) and CSX (NASDAQ:CSX) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Dividends

Guangshen Railway Co. Ltd ADR Class H pays an annual dividend of $0.54 per share and has a dividend yield of 2.7%. CSX pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. CSX pays out 38.3% of its earnings in the form of a dividend. CSX has raised its dividend for 8 consecutive years.

Profitability

This table compares Guangshen Railway Co. Ltd ADR Class H and CSX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guangshen Railway Co. Ltd ADR Class H 5.54% 3.81% 3.20%
CSX 55.19% 21.38% 8.27%

Volatility and Risk

Guangshen Railway Co. Ltd ADR Class H has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, CSX has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Guangshen Railway Co. Ltd ADR Class H and CSX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guangshen Railway Co. Ltd ADR Class H 0 0 0 0 N/A
CSX 1 5 12 0 2.61

CSX has a consensus price target of $78.11, indicating a potential upside of 6.77%. Given CSX’s higher probable upside, analysts plainly believe CSX is more favorable than Guangshen Railway Co. Ltd ADR Class H.

Insider and Institutional Ownership

0.8% of Guangshen Railway Co. Ltd ADR Class H shares are held by institutional investors. Comparatively, 75.2% of CSX shares are held by institutional investors. 71.4% of Guangshen Railway Co. Ltd ADR Class H shares are held by company insiders. Comparatively, 5.0% of CSX shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Guangshen Railway Co. Ltd ADR Class H and CSX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guangshen Railway Co. Ltd ADR Class H $2.82 billion 1.01 $156.05 million N/A N/A
CSX $11.41 billion 5.41 $5.47 billion $2.30 31.80

CSX has higher revenue and earnings than Guangshen Railway Co. Ltd ADR Class H.

Summary

CSX beats Guangshen Railway Co. Ltd ADR Class H on 12 of the 15 factors compared between the two stocks.

About Guangshen Railway Co. Ltd ADR Class H

Guangshen Railway Company Limited engages in the railroad passenger and freight transportation business in the People's Republic of China. The company's passenger transportation services include the operation of Guangzhou-Shenzhen inter-city express trains, long-distance trains, and Guangzhou-Hong Kong city through trains. Its freight transportation services comprise the transportation of full load and single load cargo, containers, bulky and overweight cargo, dangerous cargo, fresh and live cargo, and oversized cargo. The company also provides railway network usage services; and other transportation-related services, such as railway operation, locomotive and passenger car leasing, passenger service, and luggage transportation services, as well as sells food, beverages, and merchandise on board the trains and in railway stations. In addition, it is involved in train repair, materials and supplies sale, on-board catering, goods sale, cargo loading and unloading, and other businesses related to railway transportation, as well as offers warehousing, hotel management, freight transport and packaging agency, and catering management services. Further, the company engages in property management and real estate construction activities; and the supervision of construction projects. As of December 31, 2017, it operated 251 pairs of passenger trains on a daily basis, including 107 pairs of intercity high-speed passenger trains between Guangzhou and Shenzhen, 13 pairs of Hong Kong Through Trains, and 131 pairs of long-distance trains. The company was founded in 1996 and is based in Shenzhen, the People's Republic of China.

About CSX

CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. The company offers rail services, as well as transports intermodal containers and trailers. It transports agricultural and food products, fertilizers, chemicals, automotive, metals and equipment, minerals, and forest products; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants. The company also exports coal to deep-water port facilities. In addition, it offers intermodal transportation services through a network of approximately 40 terminals transporting manufactured consumer goods in containers in the eastern United States; drayage services, including the pickup and delivery of intermodal shipments; and trucking dispatch services. Further, the company serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol. Additionally, it acquires, develops, sells, leases, and manages real estate properties. The company operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 4,000 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

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