Railroad giant Burlington Northern
Burlington is living a life of luxury. Volume was at a record high. The company is able to use that strength to get a 2% price increase. It has reported three consecutive quarters of double-digit earnings growth. Amtrak this is not.
Compare those results with the nation's largest railroad. Union Pacific
Union Pacific, to relieve pressure, is using United Parcel Service
Burlington Northern, by contrast, is sharing its wealth with its shareholders. The company increased the dividend 13%. The stock now yields an impressive 2.2%.
Burlington Northern also looks good when compared with its competitors. Operating margins, at 19%, far exceed the 11.2% at CSX
Analysts are expecting Burlington Northern to earn $2.49 this year -- a multiple of 14 times earnings. That's cheap, especially considering the company is expected to log another year of double-digit earnings growth next year.
Fool contributor W.D. Crotty, sadly, owns stock in Union Pacific.