WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 5382% more annual revenue ($25.41B vs $463.52M). UNP leads profitability with a 28.8% profit margin vs -2.7%. RAIL appears more attractively valued with a PEG of 0.64. UNP earns a higher WallStSmart Score of 66/100 (B-).

RAIL

Avoid

32

out of 100

Grade: F

Growth: 4.0Profit: 3.0Value: 6.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.23

UNP

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.45

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RAIL1 strengths · Avg: 8.0/10
PEG RatioValuation
0.648/10

Growing faster than its price suggests

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
35.5%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
41.0%10/10

Strong operational efficiency at 41.0%

Market CapQuality
$168.96B9/10

Large-cap with strong market position

Profit MarginProfitability
28.8%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$2.20B8/10

Generating 2.2B in free cash flow

Areas to Watch

RAIL4 concerns · Avg: 2.3/10
Market CapQuality
$232.82M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-24.2%2/10

Earnings declined 24.2%

UNP3 concerns · Avg: 3.0/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Debt/EquityHealth
1.513/10

Elevated debt levels

PEG RatioValuation
2.842/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : RAIL

The strongest argument for RAIL centers on 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 28.8% and operating margin at 41.0%. Revenue growth of 11.5% demonstrates continued momentum.

Bear Case : RAIL

The primary concerns for RAIL are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 4.00 is elevated, increasing financial risk.

Bear Case : UNP

The primary concerns for UNP are Price/Book, Debt/Equity, PEG Ratio. Debt-to-equity of 1.51 is elevated, increasing financial risk.

Key Dynamics to Monitor

RAIL profiles as a turnaround stock while UNP is a mature play — different risk/reward profiles.

RAIL carries more volatility with a beta of 1.46 — expect wider price swings.

UNP is growing revenue faster at 11.5% — sustainability is the question.

UNP generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

UNP scores higher overall (66/100 vs 32/100), backed by strong 28.8% margins and 11.5% revenue growth. Both earn "Strong Buy" and "Avoid" 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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