WallStSmart

Canadian National Railway Company (CNI)vsCanadian Pacific Kansas City Limited (CP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 15% more annual revenue ($17.28B vs $14.98B). CP leads profitability with a 27.2% profit margin vs 27.2%. CP appears more attractively valued with a PEG of 2.22. CNI earns a higher WallStSmart Score of 62/100 (C+).

CNI

Buy

62

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.48

CP

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+8.8%)

Margin of Safety

+8.8%

Fair Value

$116.54

Current Price

$109.99

$6.55 discount

UndervaluedFair: $116.54Overvalued
CPUndervalued (+61.5%)

Margin of Safety

+61.5%

Fair Value

$217.94

Current Price

$83.50

$134.44 discount

UndervaluedFair: $217.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
38.4%10/10

Strong operational efficiency at 38.4%

Market CapQuality
$66.35B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Market CapQuality
$73.80B9/10

Large-cap with strong market position

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

CNI4 concerns · Avg: 2.8/10
EPS GrowthGrowth
1.1%4/10

1.1% earnings growth

Debt/EquityHealth
1.013/10

Elevated debt levels

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

CP4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

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 27.2% and operating margin at 38.4%.

Bull Case : CP

The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.2% and operating margin at 37.6%.

Bear Case : CNI

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

Bear Case : CP

The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

CP carries more volatility with a beta of 1.22 — expect wider price swings.

CNI is growing revenue faster at -0.5% — sustainability is the question.

CNI generates stronger free cash flow (828M), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CNI scores higher overall (62/100 vs 54/100), backed by strong 27.2% margins. CP offers better value entry with a 61.5% margin of safety. Both earn "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 Kansas City Limited

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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