In the dynamic world of transportation, two companies stand out for their innovative approaches: Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX). Both operate within the industrial sector but focus on distinct modes of freight transport—trucking for ODFL and rail for CSX. Their different strategies and market positions provide investors with valuable insights into the evolving logistics landscape. In this article, I will analyze which of these companies presents a more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Old Dominion Freight Line, Inc. Overview
Old Dominion Freight Line, Inc. (ODFL) is a leader in the less-than-truckload (LTL) segment of the trucking industry, specializing in regional, inter-regional, and national freight services across the United States and North America. Founded in 1934 and headquartered in Thomasville, North Carolina, ODFL prides itself on providing reliable and efficient transportation solutions. The company operates a robust fleet of over 10K tractors and 27K trailers, alongside maintaining service centers and providing value-added services like container drayage and supply chain consulting. With a market capitalization of approximately $26.4B, ODFL is well-positioned in a competitive landscape, emphasizing quality service and customer satisfaction.
CSX Corporation Overview
CSX Corporation (CSX) offers comprehensive rail-based freight transportation services, operating a vast network of approximately 19,500 route miles across 23 states and parts of Canada. Established in 1978 and headquartered in Jacksonville, Florida, CSX focuses on transporting a diverse range of goods, from agricultural products to industrial materials. The company also provides intermodal services, connecting rail to truck transportation, thereby enhancing supply chain efficiency. With a market capitalization around $62.7B, CSX is a significant player in the railroad sector, leveraging its extensive infrastructure to serve various industries effectively.
Key Similarities and Differences
Both ODFL and CSX operate within the broader transportation sector and emphasize efficiency and reliability in their services. However, ODFL specializes in LTL trucking, while CSX focuses on rail freight transportation. This distinction highlights their differing operational models and service offerings, catering to varying logistics needs across industries.
Income Statement Comparison
The following table illustrates a comparison of the most recent income statements for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) for the fiscal year ending December 31, 2024.
| Metric | ODFL | CSX |
|---|---|---|
| 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 |
Interpretation of Income Statement
In 2024, Old Dominion Freight Line (ODFL) experienced a modest decline in revenue compared to the previous year, indicating a slight contraction in market demand. Despite this, net income showed relative stability, reflecting effective cost management with margins remaining consistent. In contrast, CSX Corporation (CSX) faced a revenue drop as well, but at a lesser rate, allowing for a stronger net income performance. The operating margins for CSX improved slightly, suggesting enhanced operational efficiency. Overall, both companies demonstrated resilience, although growth rates faced pressure from external market conditions.
Financial Ratios Comparison
Below is a comparative table showcasing the most recent revenue and financial ratios for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX).
| Metric | ODFL | CSX |
|---|---|---|
| ROE | 27.94% | 30.62% |
| ROIC | 23.58% | 10.20% |
| P/E | 32.02 | 18.98 |
| P/B | 8.95 | 5.81 |
| Current Ratio | 1.33 | 0.86 |
| Quick Ratio | 1.33 | 0.73 |
| D/E | 0.04 | 1.52 |
| Debt-to-Assets | 0.03 | 0.45 |
| Interest Coverage | 7283.01 | 6.45 |
| Asset Turnover | 1.06 | 0.34 |
| Fixed Asset Turnover | 1.29 | 0.40 |
| Payout ratio | 18.85% | 24.05% |
| Dividend yield | 0.59% | 1.49% |
Interpretation of Financial Ratios
In analyzing these ratios, Old Dominion (ODFL) demonstrates a strong financial position, particularly with a very high interest coverage ratio, indicating robust earnings relative to interest obligations. Conversely, CSX shows higher leverage with a D/E ratio of 1.52, which may raise concerns about financial stability. While CSX has a competitive dividend yield, its current and quick ratios below 1 suggest liquidity challenges compared to ODFL. Overall, ODFL appears to be the safer investment option in this comparison, though CSX’s growth potential warrants consideration despite its risks.
Dividend and Shareholder Returns
Old Dominion Freight Line, Inc. (ODFL) offers a dividend with a payout ratio of 18.85% and a yield of 0.59%, indicating a sustainable distribution supported by free cash flow. In contrast, CSX Corporation (CSX) has a higher payout ratio of 26.80% but a lower yield of 1.49%. Both companies engage in share buybacks, enhancing shareholder value. Overall, their approaches to dividends and buybacks suggest a commitment to long-term value creation, albeit with varying risk profiles.
Strategic Positioning
In the transportation sector, Old Dominion Freight Line, Inc. (ODFL) maintains a strong position with a market cap of $26.4B, focusing on less-than-truckload (LTL) services. Its competitive edge lies in efficient service and value-added offerings. CSX Corporation, with a market cap of $62.7B, dominates rail-based freight transportation, benefiting from a vast network and diverse service options. Both companies face competitive pressure from technological advancements and evolving customer demands, necessitating constant innovation and adaptation.
Stock Comparison
In this section, I will analyze the weekly stock price movements and trading dynamics of Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) over the past year, highlighting key price changes and market trends.
Trend Analysis
Old Dominion Freight Line, Inc. (ODFL) has experienced a significant decline in its stock price, with an overall percentage change of -37.69% over the past year. This bearish trend indicates that the stock is losing value, and the trend shows signs of deceleration. The stock reached a high of $226.11 and a low of $126.29, reflecting notable volatility with a standard deviation of 25.69. Recently, from September 7, 2025, to November 23, 2025, the stock further decreased by -16.2% with a standard deviation of 5.92, reinforcing the bearish outlook.
CSX Corporation (CSX) also shows a bearish trend, with an overall percentage change of -2.86% over the past year. Despite this decline, the trend is undergoing acceleration, suggesting that the rate of decrease is increasing. The stock has fluctuated between a high of $38.33 and a low of $27.21, with a lower volatility indicated by a standard deviation of 2.29. However, in the recent period from September 7, 2025, to November 23, 2025, CSX has shown a slight recovery with a percentage change of +3.54, indicating some positive momentum, although the overall trend remains negative.
Analyst Opinions
Recent analyst recommendations for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) indicate a consensus rating of “B+”. Analysts highlight strong return on equity and return on assets for both companies, suggesting solid operational efficiency. However, concerns over their price-to-earnings ratios have been noted. Notable analysts believe that despite some risks, both stocks present favorable investment opportunities, reflecting a cautious but optimistic outlook for 2025. Overall, the sentiment leans towards a buy for investors looking for stability in the transportation sector.
Stock Grades
In this section, I’ll provide an overview of the latest stock grades for two companies: Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX). This information can help guide your investment decisions.
Old Dominion Freight Line, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2025-10-30 |
| Evercore ISI Group | Maintain | In Line | 2025-10-30 |
| Citigroup | Maintain | Buy | 2025-10-30 |
| Stephens & Co. | Maintain | Overweight | 2025-10-30 |
| Wells Fargo | Maintain | Underweight | 2025-10-30 |
| Raymond James | Maintain | Outperform | 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 exhibit a trend of maintaining their grades across multiple reputable grading firms. Notably, ODFL has a mix of grades from “Buy” to “Underweight,” indicating varying levels of confidence among analysts, while CSX consistently receives favorable grades, predominantly in the “Overweight” and “Buy” categories. This suggests a more optimistic outlook for CSX compared to ODFL.
Target Prices
The current consensus among analysts for Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) suggests favorable outlooks for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Old Dominion Freight Line, Inc. | 164 | 143 | 154 |
| CSX Corporation | 45 | 34 | 39.86 |
For ODFL, the target consensus of 154 indicates a significant upside compared to its current price of 126.29, suggesting strong expectations from analysts. Similarly, CSX’s consensus of 39.86 presents a potential increase from its current price of 33.68, reflecting positive sentiment in the market.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX).
| Criterion | Old Dominion Freight Line (ODFL) | CSX Corporation (CSX) |
|---|---|---|
| Diversification | Limited to trucking services | Diverse rail services including intermodal and bulk transport |
| Profitability | High net profit margin of 21.13% | Moderate net profit margin of 25.03% |
| Innovation | Strong focus on technology | Established operational improvements |
| Global presence | Primarily US-based operations | Extensive US and some Canadian reach |
| Market Share | Significant in LTL sector | Strong in rail freight but facing competitive pressures |
| Debt level | Low debt-to-equity ratio of 0.02 | Higher debt-to-equity ratio of 1.52 |
Key takeaways indicate that ODFL excels in profitability and has a robust market position in the LTL sector, while CSX benefits from a broader service offering despite its higher leverage. Investors should weigh these factors carefully when considering their options.
Risk Analysis
In this section, I present a comparative risk analysis of Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX) based on recent metrics.
| Metric | ODFL | CSX |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | High |
Both companies face significant market and operational risks, particularly CSX, which operates in a highly competitive environment. The transportation sector is sensitive to economic fluctuations and regulatory changes, making risk management essential to protect investor interests.
Which one to choose?
When comparing Old Dominion Freight Line, Inc. (ODFL) and CSX Corporation (CSX), both companies present solid fundamentals, with a B+ rating from analysts. ODFL boasts stronger profit margins, particularly a net profit margin of 20.4%, compared to CSX’s 23.9%. Additionally, ODFL has a lower debt-to-equity ratio (0.04) compared to CSX (1.59), indicating better financial health. However, CSX exhibits a more favorable price-to-earnings ratio at 18.0 versus ODFL’s 32.0, making it potentially more attractive on a valuation basis.
For growth-focused investors, CSX may be preferable given its recent stock price acceleration, while those prioritizing stability and lower leverage might favor ODFL. Both companies face risks related to competition and market dependence, which investors should consider.
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:
