WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 4792% more annual revenue ($24.51B vs $500.99M). UNP leads profitability with a 29.1% profit margin vs 7.6%. RAIL appears more attractively valued with a PEG of 0.64. UNP earns a higher WallStSmart Score of 60/100 (C).

RAIL

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 10.0Quality: 5.0

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

RAILUndervalued (+74.8%)

Margin of Safety

+74.8%

Fair Value

$51.01

Current Price

$8.16

$42.85 discount

UndervaluedFair: $51.01Overvalued
UNPOvervalued (-13.1%)

Margin of Safety

-13.1%

Fair Value

$211.98

Current Price

$241.33

$29.35 premium

UndervaluedFair: $211.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RAIL2 strengths · Avg: 9.0/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

PEG RatioValuation
0.648/10

Growing faster than its price suggests

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
$142.22B9/10

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

RAIL4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Market CapQuality
$153.78M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

UNP2 concerns · Avg: 2.0/10
PEG RatioValuation
2.692/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : RAIL

The strongest argument for RAIL centers on P/E Ratio, 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 29.1% and operating margin at 40.9%.

Bear Case : RAIL

The primary concerns for RAIL are EPS Growth, Market Cap, Profit Margin.

Bear Case : UNP

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

Key Dynamics to Monitor

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

RAIL carries more volatility with a beta of 1.51 — expect wider price swings.

UNP is growing revenue faster at -0.6% — sustainability is the question.

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

Bottom Line

UNP scores higher overall (60/100 vs 53/100), backed by strong 29.1% margins. RAIL offers better value entry with a 74.8% margin of safety. 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.

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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