Comparing Greenbrier Companies, Inc. (The) (GBX) & Union Pacific Corporation (UNP)
Greenbrier Companies, Inc. (The) (NYSE: GBX) and Union Pacific Corporation (NYSE:UNP) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitabiliy, valuation, risk, dividends and earnings.
Risk & Volatility
Greenbrier Companies, Inc. (The) has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Union Pacific Corporation has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Earnings and Valuation
This table compares Greenbrier Companies, Inc. (The) and Union Pacific Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Greenbrier Companies, Inc. (The)||$2.33 billion||0.58||$379.94 million||$4.06||11.72|
|Union Pacific Corporation||$20.24 billion||4.44||$9.43 billion||$5.24||21.26|
Union Pacific Corporation has higher revenue and earnings than Greenbrier Companies, Inc. (The). Greenbrier Companies, Inc. (The) is trading at a lower price-to-earnings ratio than Union Pacific Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
79.2% of Union Pacific Corporation shares are held by institutional investors. 4.6% of Greenbrier Companies, Inc. (The) shares are held by insiders. Comparatively, 0.2% of Union Pacific Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Greenbrier Companies, Inc. (The) and Union Pacific Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Greenbrier Companies, Inc. (The)||5.52%||12.41%||6.76%|
|Union Pacific Corporation||21.37%||21.53%||7.74%|
This is a breakdown of recent recommendations for Greenbrier Companies, Inc. (The) and Union Pacific Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Greenbrier Companies, Inc. (The)||2||3||3||0||2.13|
|Union Pacific Corporation||0||10||10||1||2.57|
Greenbrier Companies, Inc. (The) presently has a consensus target price of $46.17, indicating a potential downside of 3.01%. Union Pacific Corporation has a consensus target price of $108.63, indicating a potential downside of 2.47%. Given Union Pacific Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Union Pacific Corporation is more favorable than Greenbrier Companies, Inc. (The).
Greenbrier Companies, Inc. (The) pays an annual dividend of $0.88 per share and has a dividend yield of 1.8%. Union Pacific Corporation pays an annual dividend of $2.42 per share and has a dividend yield of 2.2%. Greenbrier Companies, Inc. (The) pays out 21.7% of its earnings in the form of a dividend. Union Pacific Corporation pays out 46.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Greenbrier Companies, Inc. (The) has increased its dividend for 7 consecutive years.
Union Pacific Corporation beats Greenbrier Companies, Inc. (The) on 14 of the 18 factors compared between the two stocks.
About Greenbrier Companies, Inc. (The)
The Greenbrier Companies, Inc. is a designer, manufacturer and marketer of railroad freight car equipment in North America and Europe; a manufacturer and marketer of marine barges in North America; a provider of wheel services, parts, leasing and other services to the railroad and related transportation industries in North America, and a provider of railcar repair, refurbishment and retrofitting services in North America through a joint venture partnership. It operates in four segments: Manufacturing; Wheels & Parts; Leasing & Services, and GBW Joint Venture. It also produces rail castings and tank heads through unconsolidated joint ventures. It operates an integrated business model in North America that combines freight car manufacturing, wheel services, repair, refurbishment, retrofitting, component parts, leasing and fleet management services. Its customers include railroads, leasing companies, financial institutions, shippers, carriers and transportation companies.
About Union Pacific Corporation
Union Pacific Corporation is a railroad operating company in the United States. The Company operates through its principal operating company, Union Pacific Railroad Company (UPRR). Its business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Its freight traffic consists of bulk, manifest, and premium business. Bulk traffic primarily consists of coal, grain, soda ash, ethanol, rock and crude oil shipped in unit trains-trains transporting a single commodity from one origin to one destination. Manifest traffic includes individual carload or less than train-load business involving commodities, such as lumber, paper, food and chemicals. The transportation of finished vehicles, auto parts, intermodal containers and truck trailers are included as part of its premium business. As of December 31, 2016, its network included 32,070 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways.
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