WallStSmart

Trinity Industries Inc (TRN)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 1109% more annual revenue ($24.70B vs $2.04B). UNP leads profitability with a 29.2% profit margin vs 16.6%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 72/100 (B).

TRN

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 6.5Value: 6.7Quality: 5.0
Piotroski: 6/9Altman Z: 0.88

UNP

Buy

60

out of 100

Grade: C

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TRNSignificantly Overvalued (-81.0%)

Margin of Safety

-81.0%

Fair Value

$17.50

Current Price

$32.04

$14.54 premium

UndervaluedFair: $17.50Overvalued

Intrinsic value data unavailable for UNP.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TRN5 strengths · Avg: 9.0/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
620.0%10/10

Earnings expanding 620.0% YoY

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

UNP4 strengths · Avg: 9.5/10
Return on EquityProfitability
35.5%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Market CapQuality
$173.70B9/10

Large-cap with strong market position

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

TRN4 concerns · Avg: 1.8/10
Revenue GrowthGrowth
-4.2%2/10

Revenue declined 4.2%

Free Cash FlowQuality
$-59.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

Debt/EquityHealth
4.991/10

Elevated debt levels

UNP4 concerns · Avg: 3.3/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Debt/EquityHealth
1.503/10

Elevated debt levels

PEG RatioValuation
3.552/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : TRN

The strongest argument for TRN centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 16.6% and operating margin at 12.1%. PEG of 0.69 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 : TRN

The primary concerns for TRN are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.99 is elevated, increasing financial risk.

Bear Case : UNP

The primary concerns for UNP are Price/Book, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

TRN profiles as a declining stock while UNP is a value play — different risk/reward profiles.

TRN carries more volatility with a beta of 1.35 — expect wider price swings.

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

TRN generates stronger free cash flow (-60M), providing more financial flexibility.

Bottom Line

TRN scores higher overall (72/100 vs 60/100), backed by strong 16.6% margins. Both earn "Strong 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.

Trinity Industries Inc

INDUSTRIALS · RAILROADS · USA

Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.

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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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