CSX vs UNP vs NSC vs CP

For growth investors, Canadian Pacific Kansas City Ltd.

(CP) is the stronger pick with 3. 7% revenue growth year-over-year, versus -3. 1% for CSX Corporation (CSX). Union Pacific Corporation (UNP) offers the better valuation at 22. 1x trailing P/E (21. 1x forward), making it the more compelling value choice. Analysts rate CSX Corporation (CSX) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Union Pacific Corporation (UNP) is the cheapest at 22.

1x versus CSX Corporation at 28. 9x. On forward P/E, Union Pacific Corporation is actually cheaper at 21. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Union Pacific Corporation wins at 2. 42x versus Canadian Pacific Kansas City Ltd. 's 4. 84x.

Over the past 5 years, CSX Corporation (CSX) delivered a total return of +35.

9%, compared to +10. 8% for Canadian Pacific Kansas City Ltd. (CP). Over 10 years, the gap is even starker: CSX returned +459. 3% versus CP's +230. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Norfolk Southern Corporation (NSC) is the lower-risk stock at 0.

63β versus CSX Corporation's 0. 77β — meaning CSX is approximately 21% more volatile than NSC relative to the S&P 500. On balance sheet safety, Canadian Pacific Kansas City Ltd. (CP) carries a lower debt/equity ratio of 50% versus 172% for Union Pacific Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Canadian Pacific Kansas City Ltd.

(CP) is pulling ahead at 3. 7% versus -3. 1% for CSX Corporation (CSX). On earnings-per-share growth, the picture is similar: Canadian Pacific Kansas City Ltd. grew EPS 13. 3% year-over-year, compared to -14. 0% for CSX Corporation. Over a 3-year CAGR, CP leads at 19. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Union Pacific Corporation (UNP) is the more profitable company, earning 29.

1% net margin versus 20. 5% for CSX Corporation — meaning it keeps 29. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UNP leads at 40. 1% versus 32. 1% for CSX. At the gross margin level — before operating expenses — UNP leads at 59. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Union Pacific Corporation (UNP) is the more undervalued stock at a PEG of 2. 42x versus Canadian Pacific Kansas City Ltd. 's 4. 84x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Union Pacific Corporation (UNP) trades at 21. 1x forward P/E versus 25. 9x for Norfolk Southern Corporation — 4. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UNP: 8. 5% to $287. 30.

All stocks in this comparison pay dividends.

Union Pacific Corporation (UNP) offers the highest yield at 2. 1%, versus 0. 7% for Canadian Pacific Kansas City Ltd. (CP).

For long-horizon retirement investors, Norfolk Southern Corporation (NSC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

63), 1. 7% yield, +301. 1% 10Y return). Both have compounded well over 10 years (NSC: +301. 1%, CP: +230. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.