WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 1144% more annual revenue ($25.41B vs $2.04B). UNP leads profitability with a 28.8% profit margin vs 16.6%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 75/100 (B).

TRN

Strong Buy

75

out of 100

Grade: B

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

UNP

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 9.5Value: 3.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TRNSignificantly Overvalued (-79.2%)

Margin of Safety

-79.2%

Fair Value

$17.68

Current Price

$25.54

$7.86 premium

UndervaluedFair: $17.68Overvalued
UNPSignificantly Overvalued (-89.0%)

Margin of Safety

-89.0%

Fair Value

$144.86

Current Price

$272.13

$127.27 premium

UndervaluedFair: $144.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TRN5 strengths · Avg: 9.0/10
P/E RatioValuation
6.6x10/10

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
1.8x8/10

Reasonable price relative to book value

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
$163.69B9/10

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

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

Revenue declined 4.2%

Free Cash FlowQuality
$-32.10M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

Debt/EquityHealth
4.571/10

Elevated debt levels

UNP3 concerns · Avg: 3.0/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Debt/EquityHealth
1.513/10

Elevated debt levels

PEG RatioValuation
2.722/10

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 28.8% and operating margin at 41.0%. Revenue growth of 11.5% demonstrates continued momentum.

Bear Case : TRN

The primary concerns for TRN are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.57 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

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

TRN carries more volatility with a beta of 1.34 — 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

TRN scores higher overall (75/100 vs 66/100), backed by strong 16.6% margins. Both earn "Strong Buy" and "Strong 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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