WallStSmart

Freightcar America Inc (RAIL)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 5166% more annual revenue ($24.70B vs $469.01M). UNP leads profitability with a 29.2% profit margin vs 6.3%. RAIL appears more attractively valued with a PEG of 0.64. UNP earns a higher WallStSmart Score of 60/100 (C).

RAIL

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 3.5Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.23

UNP

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.45

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RAIL3 strengths · Avg: 9.3/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-2.2310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.648/10

Growing faster than its price suggests

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Market CapQuality
$155.63B9/10

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

RAIL4 concerns · Avg: 2.5/10
Market CapQuality
$150.42M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-33.2%2/10

Revenue declined 33.2%

UNP4 concerns · Avg: 3.3/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Debt/EquityHealth
1.623/10

Elevated debt levels

PEG RatioValuation
3.222/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : RAIL

The strongest argument for RAIL centers on P/E Ratio, Debt/Equity, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

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 : RAIL

The primary concerns for RAIL are Market Cap, Profit Margin, Return on Equity.

Bear Case : UNP

The primary concerns for UNP are Price/Book, Revenue Growth, Debt/Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

RAIL carries more volatility with a beta of 1.49 — expect wider price swings.

UNP is growing revenue faster at 3.2% — sustainability is the question.

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

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

Bottom Line

UNP scores higher overall (60/100 vs 41/100), backed by strong 29.2% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Freightcar America Inc

INDUSTRIALS · RAILROADS · USA

FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.

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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