Norfolk Southern Corporation (NSC) vs Union Pacific Corporation (UNP)

Norfolk Southern Corporation and Union Pacific Corporation are both Railroads companies. Union Pacific Corporation is the larger, with a market value of $162.8B against $70.3B — 2.3× the size. Union Pacific Corporation trades at the lower P/E: 22.1× against 26.7×. Union Pacific Corporation grew revenue faster over the last twelve months: 4.17% against 2.97%. Union Pacific Corporation has the higher net margin (28.9% vs 21.0%) and the higher return on invested capital (13.0% vs 7.93%). Both pay a dividend; Norfolk Southern Corporation yields more (2.19% vs 2.17%). Across the 23 metrics below, Union Pacific Corporation leads on 15 and Norfolk Southern Corporation on 8.

Valuation

Metric NSC UNP Railroads median
P/E 26.73 22.13 26.88
P/S 5.61 6.39 2.58
P/B 4.33 7.86 4.33
Price to free cash flow 36.91 24.98 26.65
EV/EBITDA 15.77 15.03 13.50
EV/Sales 6.85 7.50 4.56
Earnings yield 3.74% 4.52% 3.59%
Free cash flow yield 2.71% 4.00% 3.41%

Profitability

Metric NSC UNP Railroads median
Gross margin 68.79% 58.95% 30.61%
Operating margin 32.19% 40.03% 24.29%
Net margin 21.00% 28.85% 10.59%
Free cash flow margin 15.20% 25.60% 8.43%
Return on equity 16.97% 39.70% 11.49%
Return on assets 5.90% 10.49% 3.98%
Return on invested capital 7.93% 13.00% 7.59%

Growth

Metric NSC UNP Railroads median
Revenue growth (TTM) 2.97% 4.17% 2.97%
EPS growth (last fiscal year) 10.20% 8.03% —
Revenue growth, 5-year CAGR 4.47% 4.64% 5.27%
Net income growth, 5-year CAGR 7.38% 5.94% 0.88%

Health

Metric NSC UNP Railroads median
Debt to equity 1.02 1.47 0.58
Current ratio 0.83 0.99 1.03
Net debt to EBITDA 2.71 2.46 2.71

Dividend

Metric NSC UNP Railroads median
Dividend yield 2.19% 2.17% 2.17%
Payout ratio 0.47 0.47 0.19

Size

Metric NSC UNP Railroads median
Market cap 70.34b 162.82b 2.22b

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