CSX vs Union Pacific Which Is More Profitable?

CSX Corporation and Union Pacific Corporation are two of the most prominent players in the railroad industry. Both companies have a strong presence in the transportation sector, providing essential services for the movement of goods and materials across the United States. Investors often compare the performance of CSX and Union Pacific stocks to determine which company offers the most attractive investment opportunities. This analysis includes factors such as financial stability, growth potential, and market competitiveness.

CSX or Union Pacific?

When comparing CSX and Union Pacific, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CSX and Union Pacific.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CSX has a dividend yield of 1.44%, while Union Pacific has a dividend yield of 2.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CSX reports a 5-year dividend growth of -12.94% year and a payout ratio of 25.19%. On the other hand, Union Pacific reports a 5-year dividend growth of 11.19% year and a payout ratio of 48.15%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CSX P/E ratio at 17.70 and Union Pacific's P/E ratio at 21.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CSX P/B ratio is 4.98 while Union Pacific's P/B ratio is 8.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CSX has seen a 5-year revenue growth of 0.53%, while Union Pacific's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CSX's ROE at 28.93% and Union Pacific's ROE at 41.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.23 for CSX and $233.18 for Union Pacific. Over the past year, CSX's prices ranged from $31.74 to $40.12, with a yearly change of 26.40%. Union Pacific's prices fluctuated between $218.55 and $258.66, with a yearly change of 18.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.