Union Pacific vs Waste Management
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KIRA’s take AI analyst
I put Union Pacific and Waste Management side by side, using each one’s latest annual report. Here is what stands out:
- Waste Management is the larger business, with $25.2B of revenue in fiscal 2025 against $24.5B for Union Pacific.
- Waste Management grew revenue faster (14.2%, against 1.1%).
- Union Pacific kept more of each dollar of sales as operating profit (40.2% operating margin, against 17.1%).
- Union Pacific turned more of its sales into free cash flow (22.4% FCF margin, against 11.2%).
- Union Pacific earned a higher return on the capital invested in it (15.9%, against 10.9%).
- Investors pay more for each dollar of Waste Management’s earnings: a P/E of 34.1x 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.
Union Pacific
UNP
8/10
Operating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Waste Management
WM
2/10
Revenue growth5-year growth
Side by side
Best in the row
| Latest fiscal year | UNP FY25 | WM FY25 |
|---|---|---|
| Size | ||
| Market cap | $176.5B | $97.0B |
| Revenue | $24.5B | $25.2B |
| Free cash flow | $5.5B | $2.8B |
| Net income | $7.1B | $2.7B |
| Growth | ||
| Revenue growth | 1.1% | 14.2% |
| 5-year growth | 4.6% | 10.6% |
| Share count change | −2.1% | 0.2% |
| Profitability | ||
| Gross margin | — | 40.4% |
| Operating margin | 40.2% | 17.1% |
| Net margin | 29.1% | 10.7% |
| FCF margin | 22.4% | 11.2% |
| Return on capital | 15.9% | 10.9% |
| Return on equity | 40.4% | 29.7% |
| Balance sheet | ||
| Net debt | $30.7B | $22.0B |
| Net debt / EBITDA | 2.5x | 3.1x |
| Dividends and buybacks | $5.9B | $1.3B |
| Valuation & quality | ||
| P/E | 23.1x | 34.1x |
| Piotroski F-score | 7 | 6 |
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.