In the dynamic world of transportation, Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) stand out as key players, albeit in different segments. ODFL specializes in less-than-truckload (LTL) services, while CSX operates a comprehensive rail-based freight system. Both companies are navigating similar market challenges and opportunities, particularly in innovation and efficiency. As we delve into their strategies and performance, I aim to help you identify which of these companies presents the more compelling investment opportunity.
Table of contents
Company Overview
Old Dominion Freight Line, Inc. Overview
Old Dominion Freight Line, Inc. (ODFL) is a prominent player in the trucking industry, specializing in less-than-truckload (LTL) transportation across the United States and North America. Founded in 1934 and headquartered in Thomasville, North Carolina, ODFL focuses on providing regional, inter-regional, and national LTL services, along with value-added offerings such as expedited transportation, supply chain consulting, and truckload brokerage. With a robust fleet of over 10K tractors and nearly 28K trailers, ODFL prides itself on its commitment to quality service and operational excellence. The company operates more than 250 service centers, reflecting its extensive reach in the logistics sector.
CSX Corporation Overview
CSX Corporation (CSX), based in Jacksonville, Florida, is a leading provider of rail-based freight transportation services. Established in 1978, CSX operates an extensive rail network of approximately 19,500 route miles, serving key population centers across 23 states and parts of Canada. The company transports a diverse range of goods, including chemicals, agricultural products, automotive parts, and coal, and offers intermodal container transportation services through an intricate network of terminals. CSX’s operations are vital for connecting various industries, including energy and manufacturing, ensuring efficient logistics solutions across the eastern U.S.
Key similarities and differences
Both Old Dominion and CSX operate in the transportation sector, yet they cater to distinct segments—ODFL specializes in LTL trucking while CSX focuses on rail freight. ODFL emphasizes regional and national trucking services, whereas CSX has a broader rail network supporting diverse cargo types. Additionally, ODFL offers more value-added services compared to CSX’s core transportation focus.
Income Statement Comparison
In this section, I will provide a side-by-side comparison of the most recent income statements for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX), highlighting key financial metrics.
| Metric | Old Dominion Freight Line, Inc. (ODFL) | CSX Corporation (CSX) |
|---|---|---|
| Market Cap | 28.29B | 65.85B |
| Revenue | 5.81B | 14.54B |
| EBITDA | 1.90B | 7.07B |
| EBIT | 1.56B | 5.39B |
| Net Income | 1.19B | 3.47B |
| EPS | 5.51 | 1.79 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Old Dominion experienced a slight decline in revenue from 5.87B to 5.81B, reflecting a downward trend that could indicate market saturation or competitive pressures. Conversely, CSX’s revenue fell from 14.66B to 14.54B, suggesting a similar struggle. Old Dominion’s net income also decreased slightly, while CSX maintained a strong net income of 3.47B, indicating better resilience. Gross margins for both companies remained relatively stable, but it is essential to monitor their performance closely, as declining revenues could affect future profitability.
Financial Ratios Comparison
The following table compares key financial ratios for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) based on the most recent fiscal year.
| Metric | Old Dominion (ODFL) | CSX Corporation (CSX) |
|---|---|---|
| ROE | 27.94% | 30.62% |
| ROIC | 23.58% | 10.20% |
| P/E | 32.02 | 18.00 |
| P/B | 8.95 | 4.99 |
| Current Ratio | 1.33 | 0.86 |
| Quick Ratio | 1.33 | 0.73 |
| D/E | 0.04 | 1.52 |
| Debt-to-Assets | 3.06% | 44.40% |
| Interest Coverage | 7283.01 | 6.45 |
| Asset Turnover | 1.06 | 0.34 |
| Fixed Asset Turnover | 1.29 | 0.40 |
| Payout ratio | 18.85% | 26.80% |
| Dividend yield | 0.59% | 1.49% |
Interpretation of Financial Ratios
The comparison reveals that Old Dominion exhibits stronger financial health, characterized by a higher ROE and ROIC, indicating effective use of equity and capital. Its low debt levels (D/E) provide a strong buffer against financial distress, while CSX’s higher debt ratio raises concerns about its leverage. Additionally, Old Dominion’s robust interest coverage suggests it can easily meet interest obligations, unlike CSX, which is more leveraged. Overall, ODFL presents a more favorable investment profile regarding risk and return.
Dividend and Shareholder Returns
Old Dominion Freight Line, Inc. (ODFL) offers a dividend, with a current yield of 0.59% and a payout ratio of 18.85%. The steady trend in dividend per share suggests a commitment to returning value, though caution is warranted given the payout’s reliance on free cash flow. CSX Corporation (CSX) also distributes dividends, yielding 1.27% with a payout ratio of 24.05%. Both companies engage in share buybacks, which can enhance shareholder returns, indicating a potential for sustainable long-term value creation.
Strategic Positioning
Old Dominion Freight Line, Inc. (ODFL) holds a strong position in the trucking industry, with a market cap of $28.3B, while CSX Corporation (CSX), a key player in the railroads sector, has a market cap of $65.8B. ODFL’s focus on less-than-truckload (LTL) services faces competitive pressure from both traditional trucking and emerging logistics technologies. Meanwhile, CSX leverages its extensive rail network to dominate freight transportation, but must navigate technological disruptions impacting the industry. Balancing these competitive dynamics is crucial for both companies’ growth strategies.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) over the past year, highlighting key price dynamics and trading behaviors.
Trend Analysis
Old Dominion Freight Line, Inc. (ODFL) Over the past year, ODFL’s stock has experienced a significant decline of -29.5%. This bearish trend indicates an acceleration in downward momentum, with a standard deviation of 25.82, reflecting considerable volatility. The highest price recorded during this period was 226.11, while the lowest was 132.29. More recently, from September 14, 2025, to November 30, 2025, the stock saw a further decline of -6.63%, with a standard deviation of 3.5. The trend slope is negative at -0.7, confirming a continuation of the bearish sentiment.
CSX Corporation (CSX) In contrast, CSX has shown a positive price change of +2.14% over the last year, indicating a bullish trend characterized by acceleration and a standard deviation of 2.3. The stock reached a high of 38.33 and a low of 27.21. Analyzing the recent trend from September 14, 2025, to November 30, 2025, CSX experienced a notable increase of +8.9% with a standard deviation of 1.24. The trend slope is slightly positive at 0.17, reinforcing the bullish outlook.
In summary, ODFL is currently in a bearish trajectory with significant price volatility, while CSX displays a bullish trend with more stable price movements.
Analyst Opinions
Recent analyst recommendations for both Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) have been positive, rating them both as B+. Analysts highlight strong return on equity and return on assets for both companies, indicating solid operational efficiency. However, concerns about their price-to-earnings and price-to-book ratios remain. Notably, analysts recommend a “buy” consensus for both stocks in 2025, suggesting confidence in their growth potential despite some caution on valuation metrics.
Stock Grades
I have collected the latest stock grades from reputable grading companies for two companies: Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX). Below are the details of their current ratings.
Old Dominion Freight Line, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | maintain | In Line | 2025-10-30 |
| JP Morgan | maintain | Neutral | 2025-10-30 |
| Stephens & Co. | maintain | Overweight | 2025-10-30 |
| Raymond James | maintain | Outperform | 2025-10-30 |
| Citigroup | maintain | Buy | 2025-10-30 |
| Wells Fargo | maintain | Underweight | 2025-10-30 |
| Stifel | maintain | Buy | 2025-10-28 |
| Raymond James | maintain | Outperform | 2025-10-14 |
| JP Morgan | maintain | Neutral | 2025-10-08 |
| UBS | maintain | Neutral | 2025-10-03 |
CSX Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2025-10-20 |
| JP Morgan | maintain | Overweight | 2025-10-20 |
| Baird | maintain | Outperform | 2025-10-20 |
| Raymond James | maintain | Outperform | 2025-10-17 |
| Jefferies | maintain | Buy | 2025-10-17 |
| UBS | maintain | Buy | 2025-10-17 |
| TD Cowen | maintain | Buy | 2025-10-17 |
| Evercore ISI Group | maintain | Outperform | 2025-10-17 |
| Citigroup | maintain | Buy | 2025-10-13 |
| JP Morgan | maintain | Overweight | 2025-10-08 |
Overall, both companies maintain a stable outlook with a mix of ratings. ODFL has a range of grades from “Underweight” to “Buy,” indicating varied perspectives among analysts, while CSX shows a strong leaning towards “Overweight” and “Buy,” suggesting positive sentiment among analysts.
Target Prices
The current consensus target prices for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) reflect positive outlooks from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Old Dominion Freight Line, Inc. (ODFL) | 164 | 143 | 154 |
| CSX Corporation (CSX) | 45 | 34 | 39.86 |
Analysts expect ODFL to reach a consensus of 154, which is higher than its current price of 135.29, signaling potential upside. For CSX, the consensus target of 39.86 is also above its current price of 35.36, indicating investor optimism.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX), two key players in the transportation industry.
| Criterion | Old Dominion Freight Line (ODFL) | CSX Corporation (CSX) |
|---|---|---|
| Diversification | Moderate; LTL services only | High; Rail and intermodal services |
| Profitability | Strong; net profit margin at 21% | Good; net profit margin at 25% |
| Innovation | Moderate investment in tech | High focus on operational efficiency |
| Global presence | Limited to North America | Strong in North America, some international ties |
| Market Share | 10% in LTL sector | 25% in rail freight |
| Debt level | Low; debt-to-equity ratio 0.02 | High; debt-to-equity ratio 1.52 |
Key takeaways indicate that while ODFL has lower debt levels and a strong profitability margin, CSX benefits from a broader service diversification and market share. Understanding these factors can guide investment decisions in the transportation sector.
Risk Analysis
The table below outlines the key risks associated with Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX).
| Metric | ODFL | CSX |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | Low | Moderate |
Both companies face significant operational and market risks, especially CSX, which is more exposed due to its reliance on rail transportation. Recent supply chain disruptions and fluctuating fuel prices have notably impacted performance in the industry.
Which one to choose?
When comparing Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX), both companies show solid fundamentals. ODFL has a net profit margin of 20.4% and a strong return on equity (ROE) of 27.9%, reflecting robust operational efficiency. CSX, while slightly lower in profitability with a net margin of 23.9% and ROE of 30.7%, presents a bullish stock trend, gaining 2.14% over the last year compared to ODFL’s bearish trend with a 29.5% drop. Analysts rate both companies as B+, suggesting stability.
For growth-oriented investors, CSX appears favorable due to its recent price momentum. Conversely, those seeking stability may find ODFL’s solid fundamentals appealing, despite its recent challenges. Both companies face risks from industry competition and supply chain pressures, impacting their long-term profitability.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Old Dominion Freight Line, Inc. and CSX Corporation to enhance your investment decisions:
