WallStSmart

Norfolk Southern Corporation (NSC)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 101% more annual revenue ($24.51B vs $12.18B). UNP leads profitability with a 29.1% profit margin vs 23.6%. UNP appears more attractively valued with a PEG of 2.63. UNP earns a higher WallStSmart Score of 60/100 (C).

NSC

Buy

53

out of 100

Grade: C-

Growth: 2.0Profit: 8.0Value: 4.7Quality: 4.5
Piotroski: 4/9

UNP

Buy

60

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 5.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NSCSignificantly Overvalued (-262.5%)

Margin of Safety

-262.5%

Fair Value

$87.52

Current Price

$281.09

$193.57 premium

UndervaluedFair: $87.52Overvalued
UNPOvervalued (-10.4%)

Margin of Safety

-10.4%

Fair Value

$212.69

Current Price

$234.92

$22.23 premium

UndervaluedFair: $212.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Market CapQuality
$63.12B9/10

Large-cap with strong market position

Profit MarginProfitability
23.6%9/10

Keeps 24 of every $100 in revenue as profit

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.4%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
40.9%10/10

Strong operational efficiency at 40.9%

Market CapQuality
$139.40B9/10

Large-cap with strong market position

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

Areas to Watch

NSC4 concerns · Avg: 2.0/10
PEG RatioValuation
3.852/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.7%2/10

Revenue declined 1.7%

EPS GrowthGrowth
-11.4%2/10

Earnings declined 11.4%

Free Cash FlowQuality
$-412.00M2/10

Negative free cash flow — burning cash

UNP2 concerns · Avg: 2.0/10
PEG RatioValuation
2.632/10

Expensive relative to growth rate

Revenue GrowthGrowth
-60.0%2/10

Revenue declined 60.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : NSC

The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.6% and operating margin at 31.2%.

Bull Case : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.

Bear Case : NSC

The primary concerns for NSC are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : UNP

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

Key Dynamics to Monitor

NSC carries more volatility with a beta of 1.30 — expect wider price swings.

NSC is growing revenue faster at -1.7% — sustainability is the question.

UNP generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UNP scores higher overall (60/100 vs 53/100), backed by strong 29.1% margins. 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.

Norfolk Southern Corporation

INDUSTRIALS · RAILROADS · USA

The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.

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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