WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 22% more annual revenue ($17.76B vs $14.51B). CNI leads profitability with a 26.9% profit margin vs 22.2%. CSX appears more attractively valued with a PEG of 1.72. CSX earns a higher WallStSmart Score of 71/100 (B).

CNI

Strong Buy

69

out of 100

Grade: B-

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

CSX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 1.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+2.5%)

Margin of Safety

+2.5%

Fair Value

$109.02

Current Price

$118.90

$9.88 discount

UndervaluedFair: $109.02Overvalued
CSXUndervalued (+34.5%)

Margin of Safety

+34.5%

Fair Value

$71.63

Current Price

$46.51

$25.12 discount

UndervaluedFair: $71.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Strong operational efficiency at 40.3%

Market CapQuality
$72.51B9/10

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

CSX5 strengths · Avg: 9.0/10
Operating MarginProfitability
38.4%10/10

Strong operational efficiency at 38.4%

Market CapQuality
$86.97B9/10

Large-cap with strong market position

Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

EPS GrowthGrowth
22.7%8/10

Earnings expanding 22.7% YoY

Areas to Watch

CNI3 concerns · Avg: 3.0/10
PEG RatioValuation
2.444/10

Expensive relative to growth rate

Debt/EquityHealth
1.033/10

Elevated debt levels

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

CSX4 concerns · Avg: 3.5/10
PEG RatioValuation
1.724/10

Expensive relative to growth rate

P/E RatioValuation
27.3x4/10

Moderate valuation

Debt/EquityHealth
1.373/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 26.9% and operating margin at 40.3%. Revenue growth of 11.3% demonstrates continued momentum.

Bull Case : CSX

The strongest argument for CSX centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 22.2% and operating margin at 38.4%. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : CNI

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

Bear Case : CSX

The primary concerns for CSX are PEG Ratio, P/E Ratio, Debt/Equity.

Key Dynamics to Monitor

CSX 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.

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

Bottom Line

CSX scores higher overall (71/100 vs 69/100), backed by strong 22.2% margins and 10.1% revenue growth. Both earn "Strong Buy" and "Strong 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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