Canadian Pacific Kansas City Limited (CP) vs Union Pacific Corporation (UNP)

Canadian Pacific Kansas City Limited and Union Pacific Corporation are both Railroads companies. Union Pacific Corporation is the larger, with a market value of $162.8B against $76.8B — 2.1× the size. Union Pacific Corporation trades at the lower P/E: 22.1× against 27.9×. Canadian Pacific Kansas City Limited grew revenue faster over the last twelve months: 4.57% against 4.17%. Union Pacific Corporation has the higher net margin (28.9% vs 25.0%) and the higher return on invested capital (13.0% vs 4.91%). Both pay a dividend; Union Pacific Corporation yields more (2.17% vs 0.68%). Across the 23 metrics below, Union Pacific Corporation leads on 16 and Canadian Pacific Kansas City Limited on 7.

Valuation

Metric CP UNP Railroads median
P/E 27.87 22.13 26.88
P/S 6.89 6.39 2.58
P/B 2.24 7.86 4.33
Price to free cash flow 43.80 24.98 26.65
EV/EBITDA 17.04 15.03 13.50
EV/Sales 8.50 7.50 4.56
Earnings yield 3.59% 4.52% 3.59%
Free cash flow yield 2.28% 4.00% 3.41%

Profitability

Metric CP UNP Railroads median
Gross margin 69.79% 58.95% 30.61%
Operating margin 36.73% 40.03% 24.29%
Net margin 24.99% 28.85% 10.59%
Free cash flow margin 15.74% 25.60% 8.43%
Return on equity 8.16% 39.70% 11.49%
Return on assets 4.43% 10.49% 3.98%
Return on invested capital 4.91% 13.00% 7.59%

Growth

Metric CP UNP Railroads median
Revenue growth (TTM) 4.57% 4.17% 2.97%
EPS growth (last fiscal year) 11.38% 8.03% —
Revenue growth, 5-year CAGR 13.40% 4.64% 5.27%
Net income growth, 5-year CAGR 10.19% 5.94% 0.88%

Health

Metric CP UNP Railroads median
Debt to equity 0.53 1.47 0.58
Current ratio 0.59 0.99 1.03
Net debt to EBITDA 3.02 2.46 2.71

Dividend

Metric CP UNP Railroads median
Dividend yield 0.68% 2.17% 2.17%
Payout ratio — 0.47 0.19

Size

Metric CP UNP Railroads median
Market cap 76.76b 162.82b 2.22b

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