GATX vs UNP

For growth investors, GATX Corporation (GATX) is the stronger pick with 12.

4% revenue growth year-over-year, versus 1. 1% for Union Pacific Corporation (UNP). Union Pacific Corporation (UNP) offers the better valuation at 22. 4x trailing P/E (21. 3x forward), making it the more compelling value choice. Analysts rate GATX Corporation (GATX) a "Buy" — based on 14 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.

4x versus GATX Corporation at 25. 6x. On forward P/E, GATX Corporation is actually cheaper at 19. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: GATX Corporation wins at 0. 90x versus Union Pacific Corporation's 2. 45x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, GATX Corporation (GATX) delivered a total return of +107.

9%, compared to +29. 4% for Union Pacific Corporation (UNP). Over 10 years, the gap is even starker: GATX returned +396. 9% versus UNP's +261. 3%. 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), Union Pacific Corporation (UNP) is the lower-risk stock at 0.

64β versus GATX Corporation's 0. 71β — meaning GATX is approximately 11% more volatile than UNP relative to the S&P 500. On balance sheet safety, Union Pacific Corporation (UNP) carries a lower debt/equity ratio of 172% versus 3% for GATX Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), GATX Corporation (GATX) is pulling ahead at 12.

4% versus 1. 1% for Union Pacific Corporation (UNP). On earnings-per-share growth, the picture is similar: GATX Corporation grew EPS 9. 3% year-over-year, compared to 7. 9% for Union Pacific Corporation. Over a 3-year CAGR, GATX leads at 8. 0% 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 17. 9% for GATX 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 29. 9% for GATX. 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, GATX Corporation (GATX) is the more undervalued stock at a PEG of 0. 90x versus Union Pacific Corporation's 2. 45x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, GATX Corporation (GATX) trades at 19. 9x forward P/E versus 21. 3x for Union Pacific Corporation — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UNP: 7. 1% to $287. 30.

All stocks in this comparison pay dividends.

Union Pacific Corporation (UNP) offers the highest yield at 2. 0%, versus 1. 2% for GATX Corporation (GATX).

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

71), 1. 2% yield, +396. 9% 10Y return). Both have compounded well over 10 years (GATX: +396. 9%, UNP: +261. 3%), 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.