WallStSmart

CNH Industrial N.V. (CNH)vsCanadian National Railway Company (CNI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CNH Industrial N.V. generates 2% more annual revenue ($18.09B vs $17.76B). CNI leads profitability with a 26.9% profit margin vs 2.1%. CNH appears more attractively valued with a PEG of 0.62. CNI earns a higher WallStSmart Score of 67/100 (B-).

CNH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 3/9Altman Z: 1.84

CNI

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CNH.

CNIUndervalued (+2.5%)

Margin of Safety

+2.5%

Fair Value

$109.08

Current Price

$127.13

$18.05 discount

UndervaluedFair: $109.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNH2 strengths · Avg: 8.0/10
PEG RatioValuation
0.628/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
40.3%10/10

Strong operational efficiency at 40.3%

Market CapQuality
$78.35B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
26.9%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

CNH4 concerns · Avg: 3.5/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

CNI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.033/10

Elevated debt levels

PEG RatioValuation
2.952/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CNH

The strongest argument for CNH centers on PEG Ratio, Price/Book. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bull Case : CNI

The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 26.9% and operating margin at 40.3%. Revenue growth of 11.3% demonstrates continued momentum.

Bear Case : CNH

The primary concerns for CNH are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.

Bear Case : CNI

The primary concerns for CNI are Debt/Equity, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

CNH profiles as a value stock while CNI is a mature play — different risk/reward profiles.

CNH carries more volatility with a beta of 1.21 — expect wider price swings.

CNI is growing revenue faster at 11.3% — sustainability is the question.

CNI generates stronger free cash flow (916M), providing more financial flexibility.

Bottom Line

CNI scores higher overall (67/100 vs 51/100), backed by strong 26.9% margins and 11.3% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CNH Industrial N.V.

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company is headquartered in Basildon, the United Kingdom.

Canadian National Railway Company

INDUSTRIALS · RAILROADS · USA

Canadian National Railway Company, is engaged in the rail and related transportation business. The company is headquartered in Montreal, Canada.

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