WallStSmart

Canadian National Railway Company (CNI)vsCanadian Pacific Railway Ltd (CP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 15% more annual revenue ($17.30B vs $15.08B). CP leads profitability with a 27.5% profit margin vs 27.3%. CNI appears more attractively valued with a PEG of 2.12. CNI earns a higher WallStSmart Score of 68/100 (B-).

CNI

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 9.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.48

CP

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+23.2%)

Margin of Safety

+23.2%

Fair Value

$138.47

Current Price

$98.41

$40.06 discount

UndervaluedFair: $138.47Overvalued
CPSignificantly Overvalued (-274.7%)

Margin of Safety

-274.7%

Fair Value

$22.37

Current Price

$78.24

$55.87 premium

UndervaluedFair: $22.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
42.4%10/10

Strong operational efficiency at 42.4%

Market CapQuality
$61.42B9/10

Large-cap with strong market position

Return on EquityProfitability
22.2%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
27.3%9/10

Keeps 27 of every $100 in revenue as profit

CP5 strengths · Avg: 9.2/10
Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Revenue GrowthGrowth
130.0%10/10

Revenue surging 130.0% year-over-year

Market CapQuality
$71.78B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

CNI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Debt/EquityHealth
1.013/10

Elevated debt levels

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

CP2 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.4%2/10

Earnings declined 7.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : CNI

The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 27.3% and operating margin at 42.4%.

Bull Case : CP

The strongest argument for CP centers on Operating Margin, Revenue Growth, Market Cap. Profitability is solid with margins at 27.5% and operating margin at 44.0%. Revenue growth of 130.0% demonstrates continued momentum.

Bear Case : CNI

The primary concerns for CNI are PEG Ratio, Revenue Growth, Debt/Equity.

Bear Case : CP

The primary concerns for CP are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

CNI profiles as a value stock while CP is a growth play — different risk/reward profiles.

CP carries more volatility with a beta of 1.17 — expect wider price swings.

CP is growing revenue faster at 130.0% — sustainability is the question.

CNI generates stronger free cash flow (997M), providing more financial flexibility.

Bottom Line

CNI scores higher overall (68/100 vs 56/100), backed by strong 27.3% margins. 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.

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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Canadian Pacific Railway Ltd

INDUSTRIALS · RAILROADS · USA

Canadian Pacific Railway Limited, owns and operates a transcontinental freight railway in Canada and the United States. The company is headquartered in Calgary, Canada.

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