WallStSmart

Canadian National Railway Company (CNI)vsLB Foster Company (FSTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 3104% more annual revenue ($17.30B vs $540.01M). CNI leads profitability with a 27.3% profit margin vs 1.4%. FSTR appears more attractively valued with a PEG of 0.19. 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

FSTR

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 8.0
Piotroski: 3/9Altman Z: 3.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+22.9%)

Margin of Safety

+22.9%

Fair Value

$137.97

Current Price

$100.97

$37.00 discount

UndervaluedFair: $137.97Overvalued
FSTRSignificantly Overvalued (-572.5%)

Margin of Safety

-572.5%

Fair Value

$4.69

Current Price

$28.04

$23.35 premium

UndervaluedFair: $4.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI5 strengths · Avg: 9.0/10
Operating MarginProfitability
42.4%10/10

Strong operational efficiency at 42.4%

Market CapQuality
$60.25B9/10

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

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

FSTR4 strengths · Avg: 9.0/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.5210/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.1%8/10

Revenue surging 25.1% year-over-year

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

FSTR4 concerns · Avg: 3.0/10
Market CapQuality
$292.15M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

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 27.3% and operating margin at 42.4%.

Bull Case : FSTR

The strongest argument for FSTR centers on PEG Ratio, Altman Z-Score, Price/Book. Revenue growth of 25.1% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.

Bear Case : CNI

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

Bear Case : FSTR

The primary concerns for FSTR are Market Cap, Return on Equity, Profit Margin. A P/E of 40.7x leaves little room for execution misses. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

FSTR carries more volatility with a beta of 0.99 — expect wider price swings.

FSTR is growing revenue faster at 25.1% — sustainability is the question.

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

Bottom Line

CNI scores higher overall (68/100 vs 55/100), 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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LB Foster Company

INDUSTRIALS · RAILROADS · USA

LB Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects globally. The company is headquartered in Pittsburgh, Pennsylvania.

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