WallStSmart

Canadian National Railway Company (CNI)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 185% more annual revenue ($50.64B vs $17.76B). CNI leads profitability with a 26.9% profit margin vs 17.7%. CNI appears more attractively valued with a PEG of 2.95. CNI earns a higher WallStSmart Score of 67/100 (B-).

CNI

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.48

GE

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 3.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+2.5%)

Margin of Safety

+2.5%

Fair Value

$109.08

Current Price

$127.13

$18.05 discount

UndervaluedFair: $109.08Overvalued

Intrinsic value data unavailable for GE.

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
$78.35B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
26.9%9/10

Keeps 27 of every $100 in revenue as profit

GE4 strengths · Avg: 9.0/10
Market CapQuality
$354.01B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.9%10/10

Every $100 of equity generates 51 in profit

Operating MarginProfitability
20.6%8/10

Strong operational efficiency at 20.6%

Revenue GrowthGrowth
21.1%8/10

Revenue surging 21.1% year-over-year

Areas to Watch

CNI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.033/10

Elevated debt levels

PEG RatioValuation
2.952/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

GE4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Debt/EquityHealth
1.093/10

Elevated debt levels

PEG RatioValuation
5.192/10

Expensive relative to growth rate

P/E RatioValuation
40.1x2/10

Premium valuation, high expectations priced in

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 : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 20.6%. Revenue growth of 21.1% demonstrates continued momentum.

Bear Case : CNI

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

Bear Case : GE

The primary concerns for GE are Altman Z-Score, Debt/Equity, PEG Ratio. A P/E of 40.1x leaves little room for execution misses.

Key Dynamics to Monitor

CNI profiles as a mature stock while GE is a growth play — different risk/reward profiles.

GE carries more volatility with a beta of 1.35 — expect wider price swings.

GE is growing revenue faster at 21.1% — sustainability is the question.

CNI generates stronger free cash flow (916M), providing more financial flexibility.

Bottom Line

CNI scores higher overall (67/100 vs 65/100), backed by strong 26.9% margins and 11.3% revenue growth. 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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GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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