Trinity Industries, Inc. (TRN) vs Union Pacific Corporation (UNP)

Trinity Industries, Inc. and Union Pacific Corporation are both Railroads companies. Union Pacific Corporation is the larger, with a market value of $162.8B against $2.2B — 73.3× the size. Trinity Industries, Inc. trades at the lower P/E: 6.6× against 22.1×. Union Pacific Corporation grew revenue faster over the last twelve months: 4.17% against −19.0%. Union Pacific Corporation has the higher net margin (28.9% vs 16.6%) and the higher return on invested capital (13.0% vs 7.59%). Both pay a dividend; Trinity Industries, Inc. yields more (4.08% vs 2.17%). Across the 22 metrics below, Union Pacific Corporation leads on 13 and Trinity Industries, Inc. on 9.

Valuation

Metric TRN UNP Railroads median
P/E 6.57 22.13 26.88
P/S 1.09 6.39 2.58
P/B 1.94 7.86 4.33
Price to free cash flow n/m 24.98 26.65
EV/EBITDA 6.91 15.03 13.50
EV/Sales 3.57 7.50 4.56
Earnings yield 15.23% 4.52% 3.59%
Free cash flow yield (15.20%) 4.00% 3.41%

Profitability

Metric TRN UNP Railroads median
Gross margin 26.24% 58.95% 30.61%
Operating margin 36.96% 40.03% 24.29%
Net margin 16.62% 28.85% 10.59%
Free cash flow margin (16.53%) 25.60% 8.43%
Return on equity 28.24% 39.70% 11.49%
Return on assets 3.98% 10.49% 3.98%
Return on invested capital 7.59% 13.00% 7.59%

Growth

Metric TRN UNP Railroads median
Revenue growth (TTM) (18.95%) 4.17% 2.97%
EPS growth (last fiscal year) 85.98% 8.03% —
Revenue growth, 5-year CAGR 4.27% 4.64% 5.27%
Net income growth, 5-year CAGR 0.00% 5.94% 0.88%

Health

Metric TRN UNP Railroads median
Debt to equity 4.56 1.47 0.58
Current ratio 1.89 0.99 1.03
Net debt to EBITDA 5.49 2.46 2.71

Dividend

Metric TRN UNP Railroads median
Dividend yield 4.08% 2.17% 2.17%
Payout ratio 0.88 0.47 0.19

Size

Metric TRN UNP Railroads median
Market cap 2.22b 162.82b 2.22b

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