Norfolk Southern vs Union Pacific
Add, change or remove companies; up to four.
KIRA’s take AI analyst
I put Norfolk Southern and Union Pacific side by side, using each one’s latest annual report. Here is what stands out:
- Union Pacific is the larger business, with $24.5B of revenue in fiscal 2025 against $12.2B for Norfolk Southern, about 2.0 times as much.
- Union Pacific grew revenue faster (1.1%, against 0.5%).
- Union Pacific kept more of each dollar of sales as operating profit (40.2% operating margin, against 35.8%).
- Union Pacific turned more of its sales into free cash flow (22.4% FCF margin, against 17.7%).
- Union Pacific earned a higher return on the capital invested in it (15.9%, against 11.2%).
- Investors pay more for each dollar of Norfolk Southern’s earnings: a P/E of 28.0x against 23.1x for Union Pacific.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Norfolk Southern
NSC
0/10
Union Pacific
UNP
10/10
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | NSC FY25 | UNP FY25 |
|---|---|---|
| Size | ||
| Market cap | $75.2B | $176.5B |
| Revenue | $12.2B | $24.5B |
| Free cash flow | $2.2B | $5.5B |
| Net income | $2.9B | $7.1B |
| Growth | ||
| Revenue growth | 0.5% | 1.1% |
| 5-year growth | 4.5% | 4.6% |
| Share count change | −0.5% | −2.1% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 35.8% | 40.2% |
| Net margin | 23.6% | 29.1% |
| FCF margin | 17.7% | 22.4% |
| Return on capital | 11.2% | 15.9% |
| Return on equity | 19.3% | 40.4% |
| Balance sheet | ||
| Net debt | $15.6B | $30.7B |
| Net debt / EBITDA | 2.7x | 2.5x |
| Dividends and buybacks | $1.7B | $5.9B |
| Valuation & quality | ||
| P/E | 28.0x | 23.1x |
| Piotroski F-score | 6 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.