WallStSmart

Canadian National Railway Company (CNI)vsCSX Corporation (CSX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 22% more annual revenue ($17.28B vs $14.15B). CNI leads profitability with a 27.2% profit margin vs 21.5%. CSX appears more attractively valued with a PEG of 2.09. CSX earns a higher WallStSmart Score of 65/100 (C+).

CNI

Buy

62

out of 100

Grade: C+

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

CSX

Buy

65

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 1.20
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
CSXUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$74.29

Current Price

$44.72

$29.57 discount

UndervaluedFair: $74.29Overvalued

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

CSX5 strengths · Avg: 9.0/10
Operating MarginProfitability
36.2%10/10

Strong operational efficiency at 36.2%

Market CapQuality
$83.10B9/10

Large-cap with strong market position

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

EPS GrowthGrowth
26.5%8/10

Earnings expanding 26.5% YoY

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%

CSX4 concerns · Avg: 3.8/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Debt/EquityHealth
1.433/10

Elevated debt levels

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 : CSX

The strongest argument for CSX centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 21.5% and operating margin at 36.2%.

Bear Case : CNI

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

Bear Case : CSX

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

Key Dynamics to Monitor

CNI profiles as a declining stock while CSX is a value play — different risk/reward profiles.

CSX carries more volatility with a beta of 1.24 — expect wider price swings.

CSX is growing revenue faster at 1.7% — sustainability is the question.

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

Bottom Line

CSX scores higher overall (65/100 vs 62/100), backed by strong 21.5% margins. 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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CSX Corporation

INDUSTRIALS · RAILROADS · USA

CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. Based in Richmond, Virginia, USA after the merger, in 2003 the CSX Corporation headquarters moved to Jacksonville, Florida.

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