Burlington Northern Santa Fe operates 32,000 miles of track throughout the western 2/3 of the U.S. Its cargo is a defensive mix of commodities with less cyclical demand: intermodal containers (38% of revenue), industrial products (23%), coal (19%), agriculture (17%) and automotive (3%).

Canadian National Railway operates 20,421 miles of track, spanning Canada from coast to coast and extending through Chicago to the Gulf of Mexico. With its "precision" operations, it consistently has the industry's highest profit margins and cash flows. It hauls forest products (20% of revenue), intermodal containers (18%), agriculture (17%), chemicals (16%), metals and mining (11%), automotive (6%) and coal (5%). Non-rail operations comprise the remaining 9%.

Canadian Pacific Railway operates 13,000 miles of track across most of Canada, the midwest and northeastern U.S. 70% of its cargo is a defensive mix of commodities with less cyclical demand: intermodal containers (28% of revenue), grain (20%), coal (12%), fertilizer (11%) and a diverse mix of other merchandise. Cyclical automotive and forest products each comprise 6-7%. CP is 3 years into an exclusive 7-year contract with Canpotex to haul all Saskatchewan potash, a key ingredient in crop fertilizer.

CSX operates 21,000 miles of track in the Eastern U.S. It hauls one of the highest proportions of noncyclical coal products (26% of revenue) as well as intermodal traffic (14%), chemicals (13%) and a diverse mix of other merchandise. Its operating ratios are improving but are still at the low end of the industry's range, so this may be more of a turnaround play. The proxy fight with an activist hedge fund is currently under appeal, and should be resolved in September.

Norfolk Southern operates 21,000 miles of track in the eastern U.S. It's one of the industry's safest and most profitable railroads. It hauls coal (24% of revenue), intermodal traffic (20%), plus a diverse mix of automotive, agriculture, metals, chemical and forest products (9-12% each).

Union Pacific operates 32,205 miles of track in the western 2/3 of the U.S. Its cargo mix is rich in commodities with less cyclical demand: coal (20% of revenue), industrial products (20%), intermodal containers (19%), agriculture (17%), chemicals (15%) and automotive (10%). It owns 26% of Ferromex, a private consortium that operates Mexico's largest railroad, deriving more than $1 billion of revenue hauling freight to and from Mexico. Its profit margins and cash flows are improving, but lag its better-performing peers.

Genesee & Wyoming is North America's only public short-line railroad, operating 6,000 miles of track and accessing another 3,000 miles. It derives 2/3 of revenue by transporting freight on about 50 short-line and regional-freight rails in the U.S., Canada, Australia, the Netherlands and Bolivia. Remaining revenues are derived from switching, loading, leasing, fuel sales and crewing operations. Its cargo mix is concentrated in more cyclical paper/pulp (21% of revenue) and lumber (11%) products, with the balance comprised of less cyclical metals/minerals (21%), coal products (18%), agriculture goods (11%) and a mix of other freight. While very acquisitive, GWR has a disciplined strategy and diversified asset base, and is respected among industry peers for its operational excellence.