WallStSmart

Canadian National Railway Company (CNI)vsTrinity Industries Inc (TRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 702% more annual revenue ($17.30B vs $2.16B). CNI leads profitability with a 27.3% profit margin vs 11.7%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 69/100 (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

TRN

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 10.0Quality: 4.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+23.2%)

Margin of Safety

+23.2%

Fair Value

$138.47

Current Price

$98.41

$40.06 discount

UndervaluedFair: $138.47Overvalued
TRNUndervalued (+78.4%)

Margin of Safety

+78.4%

Fair Value

$146.95

Current Price

$29.60

$117.35 discount

UndervaluedFair: $146.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
42.4%10/10

Strong operational efficiency at 42.4%

Market CapQuality
$61.42B9/10

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

TRN5 strengths · Avg: 9.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
574.0%10/10

Earnings expanding 574.0% YoY

Return on EquityProfitability
23.2%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

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

TRN3 concerns · Avg: 1.7/10
Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

Free Cash FlowQuality
$-60.40M2/10

Negative free cash flow — burning cash

Debt/EquityHealth
5.051/10

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 27.3% and operating margin at 42.4%.

Bull Case : TRN

The strongest argument for TRN centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 0.69 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 : TRN

The primary concerns for TRN are Revenue Growth, Free Cash Flow, Debt/Equity. Debt-to-equity of 5.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

TRN carries more volatility with a beta of 1.46 — expect wider price swings.

CNI is growing revenue faster at 2.4% — sustainability is the question.

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

Bottom Line

TRN scores higher overall (69/100 vs 68/100). CNI offers better value entry with a 23.2% margin of safety. 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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Trinity Industries Inc

INDUSTRIALS · RAILROADS · USA

Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.

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