CSX Corporation (CSX) vs Union Pacific Corporation (UNP)

CSX Corporation and Union Pacific Corporation are both Railroads companies. Union Pacific Corporation is the larger, with a market value of $162.8B against $86.2B — 1.9× the size. Union Pacific Corporation trades at the lower P/E: 22.1× against 27.0×. Union Pacific Corporation grew revenue faster over the last twelve months: 4.17% against 2.52%. Union Pacific Corporation has the higher net margin (28.9% vs 22.2%) and the higher return on invested capital (13.0% vs 9.81%). Both pay a dividend; Union Pacific Corporation yields more (2.17% vs 1.25%). Across the 23 metrics below, Union Pacific Corporation leads on 17 and CSX Corporation on 6.

Valuation

Metric CSX UNP Railroads median
P/E 27.04 22.13 26.88
P/S 5.98 6.39 2.58
P/B 6.16 7.86 4.33
Price to free cash flow 29.30 24.98 26.65
EV/EBITDA 15.39 15.03 13.50
EV/Sales 7.18 7.50 4.56
Earnings yield 3.70% 4.52% 3.59%
Free cash flow yield 3.41% 4.00% 3.41%

Profitability

Metric CSX UNP Railroads median
Gross margin 69.37% 58.95% 30.61%
Operating margin 34.15% 40.03% 24.29%
Net margin 22.21% 28.85% 10.59%
Free cash flow margin 20.41% 25.60% 8.43%
Return on equity 24.36% 39.70% 11.49%
Return on assets 7.35% 10.49% 3.98%
Return on invested capital 9.81% 13.00% 7.59%

Growth

Metric CSX UNP Railroads median
Revenue growth (TTM) 2.52% 4.17% 2.97%
EPS growth (last fiscal year) (13.97%) 8.03% —
Revenue growth, 5-year CAGR 5.89% 4.64% 5.27%
Net income growth, 5-year CAGR 0.88% 5.94% 0.88%

Health

Metric CSX UNP Railroads median
Debt to equity 1.34 1.47 0.58
Current ratio 0.82 0.99 1.03
Net debt to EBITDA 2.86 2.46 2.71

Dividend

Metric CSX UNP Railroads median
Dividend yield 1.25% 2.17% 2.17%
Payout ratio 0.21 0.47 0.19

Size

Metric CSX UNP Railroads median
Market cap 86.21b 162.82b 2.22b

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