Union Pacific Corporation (NYSE: UNP) is one of 28 publicly-traded companies in the “Ground Freight & Logistics” industry, but how does it compare to its peers? We will compare Union Pacific Corporation to related companies based on the strength of its dividends, profitability, institutional ownership, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares Union Pacific Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Union Pacific Corporation 21.79% 22.70% 8.05%
Union Pacific Corporation Competitors 11.41% 16.06% 5.67%

Volatility & Risk

Union Pacific Corporation has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Union Pacific Corporation’s peers have a beta of 1.36, indicating that their average share price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Union Pacific Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Union Pacific Corporation $20.72 billion $9.80 billion 20.89
Union Pacific Corporation Competitors $5.92 billion $1.74 billion -5.17

Union Pacific Corporation has higher revenue and earnings than its peers. Union Pacific Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Union Pacific Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Union Pacific Corporation 0 10 8 0 2.44
Union Pacific Corporation Competitors 228 1379 1820 72 2.50

Union Pacific Corporation presently has a consensus price target of $113.69, suggesting a potential downside of 1.43%. As a group, “Ground Freight & Logistics” companies have a potential upside of 12.39%. Given Union Pacific Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe Union Pacific Corporation has less favorable growth aspects than its peers.

Institutional and Insider Ownership

78.4% of Union Pacific Corporation shares are held by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 0.2% of Union Pacific Corporation shares are held by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Union Pacific Corporation pays an annual dividend of $2.42 per share and has a dividend yield of 2.1%. Union Pacific Corporation pays out 43.8% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.6% and pay out 36.0% of their earnings in the form of a dividend. Union Pacific Corporation has raised its dividend for 7 consecutive years.

Summary

Union Pacific Corporation beats its peers on 8 of the 15 factors compared.

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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