WallStSmart

California Water Service Group (CWT)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 2344% more annual revenue ($24.70B vs $1.01B). UNP leads profitability with a 29.2% profit margin vs 11.8%. CWT appears more attractively valued with a PEG of 1.93. UNP earns a higher WallStSmart Score of 60/100 (C).

CWT

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 6.7Quality: 2.8
Piotroski: 1/9Altman Z: 0.74

UNP

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+30.3%)

Margin of Safety

+30.3%

Fair Value

$63.31

Current Price

$43.03

$20.28 discount

UndervaluedFair: $63.31Overvalued
UNPSignificantly Overvalued (-76.0%)

Margin of Safety

-76.0%

Fair Value

$150.01

Current Price

$268.23

$118.22 premium

UndervaluedFair: $150.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Market CapQuality
$156.39B9/10

Large-cap with strong market position

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

EPS GrowthGrowth
-69.3%2/10

Earnings declined 69.3%

UNP3 concerns · Avg: 3.3/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

PEG RatioValuation
3.282/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : UNP

The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

UNP carries more volatility with a beta of 0.99 — expect wider price swings.

CWT is growing revenue faster at 5.2% — sustainability is the question.

UNP generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UNP scores higher overall (60/100 vs 53/100), backed by strong 29.2% margins. CWT offers better value entry with a 30.3% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.

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Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

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