American Water Works (AWK)vsUnion Pacific Corporation (UNP)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
UNP
Union Pacific Corporation
$268.23
+1.60%
INDUSTRIALS · Cap: $156.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Union Pacific Corporation generates 375% more annual revenue ($24.70B vs $5.21B). UNP leads profitability with a 29.2% profit margin vs 21.2%. AWK appears more attractively valued with a PEG of 2.30. UNP earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.75
Current Price
$125.68
$13.93 premium
Margin of Safety
-76.0%
Fair Value
$150.01
Current Price
$268.23
$118.22 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Every $100 of equity generates 41 in profit
Strong operational efficiency at 40.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Trading at 8.6x book value
3.2% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : UNP
The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
AWK profiles as a mature stock while UNP is a value play — different risk/reward profiles.
UNP carries more volatility with a beta of 0.99 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
UNP generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 60/100), backed by strong 21.2% 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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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