UPS vs UNP

For growth investors, Union Pacific Corporation (UNP) is the stronger pick with 1.

1% revenue growth year-over-year, versus -2. 5% for United Parcel Service, Inc. (UPS). United Parcel Service, Inc. (UPS) offers the better valuation at 16. 0x trailing P/E (14. 8x forward), making it the more compelling value choice. Analysts rate Union Pacific Corporation (UNP) a "Buy" — based on 47 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, United Parcel Service, Inc.

(UPS) is the cheapest at 16. 0x versus Union Pacific Corporation at 21. 5x. On forward P/E, United Parcel Service, Inc. is actually cheaper at 14. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: United Parcel Service, Inc. wins at 0. 44x versus Union Pacific Corporation's 2. 34x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Union Pacific Corporation (UNP) delivered a total return of +31.

7%, compared to -31. 3% for United Parcel Service, Inc. (UPS). Over 10 years, the gap is even starker: UNP returned +239. 7% versus UPS's +45. 5%. 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.

38β versus United Parcel Service, Inc. 's 0. 89β — meaning UPS is approximately 133% 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 199% for United Parcel Service, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Union Pacific Corporation (UNP) is pulling ahead at 1.

1% versus -2. 5% for United Parcel Service, Inc. (UPS). On earnings-per-share growth, the picture is similar: Union Pacific Corporation grew EPS 7. 9% year-over-year, compared to -3. 0% for United Parcel Service, Inc.. Over a 3-year CAGR, UNP leads at -0. 5% 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 6. 3% for United Parcel Service, Inc. — 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 9. 6% for UPS. 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, United Parcel Service, Inc. (UPS) is the more undervalued stock at a PEG of 0. 44x versus Union Pacific Corporation's 2. 34x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, United Parcel Service, Inc. (UPS) trades at 14. 8x forward P/E versus 20. 4x for Union Pacific Corporation — 5. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UNP: 14. 2% to $293. 30.

All stocks in this comparison pay dividends.

United Parcel Service, Inc. (UPS) offers the highest yield at 6. 0%, versus 2. 1% for Union Pacific Corporation (UNP).

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

38), 2. 1% yield, +239. 7% 10Y return). Both have compounded well over 10 years (UNP: +239. 7%, UPS: +45. 5%), 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.

In terms of investment character: UPS is a mid-cap deep-value stock; UNP is a mid-cap quality compounder stock. 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.