The rising demand for cost-efficient freight transportation, along with governmental policy support for improving railway infrastructure, should benefit both Union Pacific (UNP) and CSX (CSX). What stock do you think is the best buy? Let’s find out.Union Pacific Corporation (NYSE:), which is headquartered in Omaha, Neb., and CSX Corporation (NASDAQ:), in Jacksonville, Fla., are two popular railroad operating companies in the United States. UNP transports automotive and chemical products, as well as long-haul rail routes that connect all of the West Coast and Gulf Coast ports with Eastern gateways. It also links to Canada’s railway systems, which serves major Mexican gateways. CSX provides rail, intermodal, domestic container-shipping, barging, and contract logistics services worldwide, and transports chemicals, minerals, agricultural and food products, and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities.

With the gradual lifting COVID-19 restrictions, and the restarting of industrial activities, the railroad industry is regaining its pre-pandemic lows. President Biden’s proposed infrastructure spending, which includes a general federal transportation support reauthorization, is expected to be a boon for the railroad industry. Market size for the U.S. railway transportation industry will increase 9.8% by 2021. Both UNP and CSX will benefit.

CSX’s share price is up marginally, while UNP shares have declined by 3.2% since the beginning of this year. CSX is a clear winner with 14.4% price gains versus UNP’s negative returns in terms of their past year’s performance. What stock do you think is the best? Let’s find out.

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