Compare StocksUNP vs VZ

Union Pacific Corporation (UNP) vs Verizon Communications Inc. (VZ): Which Is the Better Buy in 2026?

As of 2026-06-19, UNP is overvalued at $257, with a DCF intrinsic value of $224 and a margin of safety of -14%. VZ is overvalued at $45, with an intrinsic value of $40 and a margin of safety of -14%. Of the two, VZ has the wider margin of safety.

UNP
Union Pacific Corporation
$256.88
VS
VZ
Verizon Communications Inc.
$45.37

Rewards

UNP
  • Union Pacific Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • Union Pacific Corporation scores 80/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
VZ
  • Free cash flow has grown at a 23.7% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • FCF yield of 10.4% is historically attractive — the business generates significant cash relative to its price.
  • PEG ratio of 0.88 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.

Risks

UNP
  • Each dollar of retained earnings has produced only $0.15 of earning power — shareholders may have been better served by dividends.
  • PEG ratio of 3.27 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • High leverage (1.57x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
VZ
  • High leverage (1.84x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • Altman Z-Score of 1.24 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • Insiders have sold $3.5M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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UNP
VZ
Valuation
$5.50B
Free Cash Flow
$19.61B
3.61%
FCF Yield
10.35%
21.16
Trailing P/E
11.07
18.75
Forward P/E
8.62
Quality & Moat
15.46%
ROIC
9.06%
40.69%
ROE
17.20%
56.53%
Gross Margin
58.91%
3.27
PEG Ratio
0.88
Balance Sheet Safety
1.57
Net Debt / Equity
1.84
N/A
Interest Coverage
N/A
2.42
Net Debt / EBITDA
3.77
2.12%
Dividend Yield
6.06%
UNP: 4Ties: 2VZ: 6
UNPVZ

Historical Fundamentals

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UNP

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

VZ

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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UNP
$0.98
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$10.64B
Δ Market Cap
+$10.42B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
VZ
$0.50
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$12.54B
Δ Market Cap
+$6.29B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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UNP
14.5% Overvalued
Price is 14.5% above estimated fair value
Current Price: $256.88
Fair Value: $224.43
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
VZ
13.8% Overvalued
Price is 13.8% above estimated fair value
Current Price: $45.37
Fair Value: $39.87
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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UNP

What growth rate is the market pricing in at $257?

+11.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +14.6%

The market implies +11.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +14.6%, reflecting heavy growth investment.

VZ

What growth rate is the market pricing in at $45?

+8.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +7.3%

The market implies +8.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +7.3%, reflecting heavy growth investment.

Economic Moat Score

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UNP
80/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by margin stability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
VZ
55/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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UNP
-2.61
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
VZ
-2.69
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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UNP
Insiders 0.1%Institutions 90.8%Retail & Other 9.1%
No. of Institutional Holders3,486
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
VZ
Insiders 0.0%Institutions 70.4%Retail & Other 29.6%
No. of Institutional Holders4,047
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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UNP
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
VZ
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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UNP
3
Sells (3M)
4
Sells (12M)
Total value (12M): $9.25M
GEHRINGER ERIC J.
Officer
$789,504
@ $263.96 · 2026-06-03
ROCKER KENYATTA G.
Officer
$7.44M
@ $271.76 · 2026-04-24
HAMANN JENNIFER L
Chief Financial Officer
$549,400
@ $274.70 · 2026-04-24
GEHRINGER ERIC J.
Officer
$469,625
@ $234.93 · 2026-03-20
RICHARDSON CRAIG V
Officer
$1.64M
@ $252.00 · 2025-01-27
WHITED ELIZABETH F.
President
$1.88M
@ $250.00 · 2025-01-24
WHITED ELIZABETH F.
President
$875,905
@ $246.59 · 2024-07-30
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
VZ
1
Sells (3M)
3
Sells (12M)
Total value (12M): $4.35M
HAMMOCK SAMANTHA
Officer
$3.50M
@ $47.83 · 2026-05-29
STILLWELL MARY-LEE
Officer
$428,450
@ $50.00 · 2026-03-02
RUSSO JOSEPH J.
Officer
$429,906
@ $44.88 · 2026-02-02
MALADY KYLE
Officer
$438,101
@ $43.81 · 2025-05-08
MALADY KYLE
Officer
$396,900
@ $44.10 · 2025-05-07
MALADY KYLE
Officer
$329,062
@ $43.87 · 2025-04-30
MALADY KYLE
Officer
$430,240
@ $43.02 · 2025-04-24
MALADY KYLE
Officer
$212,425
@ $42.48 · 2025-04-23
VENKATESH VANDANA
Officer
$437,939
@ $43.79 · 2025-02-25
MALADY KYLE
Officer
$261,623
@ $39.70 · 2025-02-04
MALADY KYLE
Officer
$319,080
@ $39.88 · 2025-02-03
MALADY KYLE
Chief Executive Officer
$453,155
@ $40.88 · 2025-01-29
MALADY KYLE
Officer
$809,800
@ $40.49 · 2025-01-28
MALADY KYLE
Officer
$810,800
@ $40.54 · 2025-01-27
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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UNP
FearGreed
😐Neutral(54/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
VZ
FearGreed
😐Neutral(51/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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UNP
Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (54)
VZ
Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (51)
View UNP Full AnalysisView VZ Full Analysis

Frequently Asked Questions: UNP vs VZ

Is Union Pacific Corporation or Verizon Communications Inc. more undervalued in 2026?

Based on our discounted cash flow model, VZ trades at a -13.8% margin of safety (intrinsic value $40 vs. price $45), compared to UNP's -14.5% margin of safety (intrinsic $224 vs. $257).

Which stock has a wider economic moat, Union Pacific Corporation or Verizon Communications Inc.?

UNP scores 80/100 (Wide moat), while VZ scores 55/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Verizon Communications Inc. in financial distress?

VZ's Altman Z-Score of 1.2 places it in the Distress zone, signaling elevated bankruptcy risk. UNP scores 3.8 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Union Pacific Corporation or Verizon Communications Inc.?

Verizon Communications Inc. (VZ) generates a 10.4% free cash flow yield, compared to Union Pacific Corporation's 3.6%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Union Pacific Corporation or Verizon Communications Inc.?

UNP earns 15.5% ROIC versus VZ's 9.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Union Pacific Corporation's or Verizon Communications Inc.'s?

UNP's dividend earns a safety score of 94/100 (Very Safe), compared to VZ's 84/100 (Very Safe). UNP has raised its dividend for 3 consecutive years.