Old Dominion Freight Line’s profits have grown even faster in recent years, with ODFL stock being more expensive than CSX stock. CSX trades 7 times the revenue while ODFL trades about 8 times. Looking at other indicators, the ODFL stock price appears to be 32x P/EBIT and around 43x P/E respectively, compared to 17x and 22x CSX stock.
Both companies saw revenue growth in the last quarter due to the economic recovery, but the growth of the Old Minion cargo line was driven by strong demand for below-average truck capacity and average delivery sales. Getting better. The demand for goods increases due to the opening of the economy.
There is still something to compare, however. Let’s look at historical sales growth and operating profit for a complete picture of the relative valuations of the two companies. CSX vs. Old Dominion Freight Line Dashboard: Industry Friend; Which stock is better? There’s more to it than that. Part of the analysis is summarized below.
Old Dominion Freight Line’s revenue growth over the past 12 months has generally been faster than CSX (24% versus 12%) given the industry’s high demand for trucks. Looking at the three-year average sales growth rate, the 6% CAGR in the Old Dominion Freight Line is higher than the -2% CAGR in CSX.
Except for 2020, Old Dominion Freight Line sales continue to increase and demand in the trucking industry is increasing. In the case of CSX, the decline in production in various industries during the pandemic had an impact on revenue growth and decreased demand for rail transportation. The CSX Revenue Management dashboard displays details about your company’s segments.
Old Dominion’s sales are expected to exceed 30% in the future in 2021, but consensus estimates say growth could fall to low double digits over the next year. In the case of CSX, sales will grow in late teens in 2021 and jump to low double digits in 2022. Both companies are benefiting from the economic opening up after the pandemic.
Driver shortages are a well-known problem in the trucking industry and cannot keep up with the growing demand. Keep in mind that 72% of all cargo in the United States is trucks. Overall, demand for the entire trucking industry is likely to remain high, and Old Dominion Freight Line is one of the largest LTL operators in North America.
In the case of CSX, the disruption of car production due to chip shortages will have a short-term impact on car transportation. However, tariffs on other industrial products may rise. In particular, coal transportation should remain stable in the future, as demand for coal has increased due to a significant doubling of natural gas prices in 2021.
In fact, the proportion of natural gas production is expected to decline from 39% in 2020 to 36% in 2020. 2021 and 35% in 2022, but the use of coal for power generation will increase and mean production will increase. And the demand for this transportation has been increasing.