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CP vs UNP
Which Stock Would AI Choose? Canadian Pacific Kansas City (CP) vs. Union Pacific (UNP) Stock Comparison
Key Takeaways
- CP and UNP are leading North American railroad operators with exposure to freight transportation, intermodal, and bulk commodities.
- UNP reported stronger recent quarterly results, including a Q2 2026 adjusted EPS beat and revenue of approximately $6.9 billion, contributing to notable stock momentum.
- Year-to-date returns favor UNP at around 34% compared to roughly 25% for CP, reflecting differences in relative performance amid sector dynamics.
- UNP maintains a larger market capitalization and lower price-to-earnings ratio than CP, with ongoing merger-related developments adding to its visibility.
- Both companies operate in the same cyclical industry, where volume trends, operating ratios, and regulatory outcomes on mergers influence sentiment and positioning.
- Recent market activity shows UNP exhibiting more pronounced short-term gains, while CP demonstrates steadier fundamentals in a competitive rail landscape.
Introduction
Railroad stocks such as CP and UNP offer investors exposure to North American freight transportation, a sector sensitive to economic cycles, commodity flows, and infrastructure spending. This comparison examines their business models, recent performance metrics, and relative positioning in the current environment. Professional traders and long-term investors focused on transportation equities may find value in assessing contrasts in scale, earnings momentum, and sector catalysts. The analysis draws on observable financial data and market developments to highlight trade-offs without forward-looking speculation.
CP Overview and Recent Performance
Canadian Pacific Kansas City Limited operates an extensive rail network spanning Canada, the United States, and Mexico, transporting grain, energy products, intermodal containers, and automotive goods. In recent weeks, the stock has reflected broader transportation sector trends amid stable volume expectations and integration efforts following its prior merger with Kansas City Southern. Market activity has shown measured movements, with performance influenced by commodity demand and cross-border trade dynamics. Sentiment remains tied to operational efficiency metrics such as the operating ratio, where incremental improvements support investor confidence during periods of economic uncertainty.
UNP Overview and Recent Performance
Union Pacific Corporation manages a major U.S. rail network focused on freight services including intermodal, agricultural products, energy, and industrial shipments. Recent market activity featured a strong Q2 2026 earnings report with revenue near $6.9 billion and adjusted EPS of $3.41, surpassing consensus estimates. The stock recorded gains of approximately 17.5% over the prior 30-day period, supported by volume growth in key segments and analyst price target revisions. Developments around a proposed merger with Norfolk Southern have added visibility, while capital expenditure plans and full-year guidance revisions have shaped positioning within the rail group.
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Head-to-Head Comparison
Both CP and UNP derive revenue primarily from freight rail services, yet UNP operates at larger scale with higher EBITDA and revenue figures. Business models overlap in intermodal and bulk transport, though CP benefits from broader North American geographic reach post-merger. Recent momentum has favored UNP, evidenced by stronger year-to-date returns and earnings beats, while CP shows comparatively steadier but lower relative gains. Risk factors include regulatory scrutiny on mergers for both, with UNP facing additional attention on its Norfolk Southern proposal. Sector exposure remains similar, centered on cyclical freight demand, though valuation metrics indicate UNP trades at a lower price-to-earnings ratio. Market sentiment reflects these differences through divergent short-term price action amid shared macroeconomic influences.
Tickeron AI Verdict
Based on observable factors including recent earnings consistency, volume trends, and relative price momentum, Tickeron’s AI models may currently assign a higher probabilistic preference to UNP. Stronger quarterly results and accelerated short-term performance provide measurable support for this positioning, though both stocks operate in a correlated industry where external catalysts can shift dynamics. Investors should evaluate these trends alongside individual risk tolerances and broader portfolio considerations.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CP is a StrongBuy and UNP is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CP’s FA Score shows that 1 FA rating(s) are green whileUNP’s FA Score has 3 green FA rating(s).
- CP’s FA Score: 1 green, 4 red.
- UNP’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CP’s TA Score shows that 5 TA indicator(s) are bullish while UNP’s TA Score has 3 bullish TA indicator(s).
- CP’s TA Score: 5 bullish, 4 bearish.
- UNP’s TA Score: 3 bullish, 5 bearish.
Price Growth
CP (@Railroads) experienced а +4.07% price change this week, while UNP (@Railroads) price change was +0.82% for the same time period.
The average weekly price growth across all stocks in the @Railroads industry was -0.38%. For the same industry, the average monthly price growth was +0.48%, and the average quarterly price growth was +1.66%.
Reported Earning Dates
CP is expected to report earnings on Oct 28, 2026.
UNP is expected to report earnings on Oct 22, 2026.
Industries' Descriptions
@Railroads (-0.38% weekly)The Railroad industry includes passenger and freight transportation services along rail lines. This also includes companies that provide maintenance and switching duties as part of rail services. Within North America, the industry is largely dominated by some large operators. Several short-line railroads serve regional and local routes. Union Pacific Corporation, Canadian National Railway Company, and CSX Corporation are some of the prominent names in the business. The railroad business is relatively cyclical; economic expansion boost the freight services in particular, while economic stagnation often dampens transportation demand.
| CP | UNP | CP / UNP | |
| Capitalization | 82.6B | 177B | 47% |
| EBITDA | 8.14B | 13.3B | 61% |
| Gain YTD | 27.557 | 30.080 | 92% |
| P/E Ratio | 30.41 | 24.11 | 126% |
| Revenue | 15.4B | 25.4B | 61% |
| Total Cash | 366M | 2.11B | 17% |
| Total Debt | 25.1B | 31.2B | 80% |
CP | UNP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 23 | 70 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 91 Overvalued | 87 Overvalued | |
PROFIT vs RISK RATING 1..100 | 53 | 40 | |
SMR RATING 1..100 | 77 | 25 | |
PRICE GROWTH RATING 1..100 | 48 | 31 | |
P/E GROWTH RATING 1..100 | 23 | 26 | |
SEASONALITY SCORE 1..100 | 35 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
UNP's Valuation (87) in the Railroads industry is in the same range as CP (91). This means that UNP’s stock grew similarly to CP’s over the last 12 months.
UNP's Profit vs Risk Rating (40) in the Railroads industry is in the same range as CP (53). This means that UNP’s stock grew similarly to CP’s over the last 12 months.
UNP's SMR Rating (25) in the Railroads industry is somewhat better than the same rating for CP (77). This means that UNP’s stock grew somewhat faster than CP’s over the last 12 months.
UNP's Price Growth Rating (31) in the Railroads industry is in the same range as CP (48). This means that UNP’s stock grew similarly to CP’s over the last 12 months.
CP's P/E Growth Rating (23) in the Railroads industry is in the same range as UNP (26). This means that CP’s stock grew similarly to UNP’s over the last 12 months.
| CP | UNP | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 64% | 2 days ago 51% |
| Stochastic ODDS (%) | 2 days ago 57% | 2 days ago 54% |
| Momentum ODDS (%) | 2 days ago 58% | 2 days ago 64% |
| MACD ODDS (%) | 2 days ago 62% | 2 days ago 58% |
| TrendWeek ODDS (%) | 2 days ago 55% | 2 days ago 53% |
| TrendMonth ODDS (%) | 2 days ago 48% | 2 days ago 48% |
| Advances ODDS (%) | 2 days ago 56% | 2 days ago 56% |
| Declines ODDS (%) | 16 days ago 58% | 8 days ago 47% |
| BollingerBands ODDS (%) | 2 days ago 47% | 2 days ago 53% |
| Aroon ODDS (%) | 2 days ago 47% | 2 days ago 40% |
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CP and
Correlation & Price change
A.I.dvisor indicates that over the last year, CP has been closely correlated with CNI. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if CP jumps, then CNI could also see price increases.
UNP and
Correlation & Price change
A.I.dvisor indicates that over the last year, UNP has been closely correlated with NSC. These tickers have moved in lockstep 87% of the time. This A.I.-generated data suggests there is a high statistical probability that if UNP jumps, then NSC could also see price increases.