WallStSmart

Canadian National Railway Company (CNI)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 43% more annual revenue ($24.70B vs $17.28B). UNP leads profitability with a 29.2% profit margin vs 27.2%. CNI appears more attractively valued with a PEG of 2.52. CNI earns a higher WallStSmart Score of 62/100 (C+).

CNI

Buy

62

out of 100

Grade: C+

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

UNP

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 3.3Quality: 5.0
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
UNPSignificantly Overvalued (-76.0%)

Margin of Safety

-76.0%

Fair Value

$150.01

Current Price

$263.41

$113.40 premium

UndervaluedFair: $150.01Overvalued

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

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Market CapQuality
$156.39B9/10

Large-cap with strong market position

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

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%

UNP3 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

PEG RatioValuation
3.282/10

Expensive relative to growth rate

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 : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.

Bear Case : CNI

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

Bear Case : UNP

The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

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

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

UNP is growing revenue faster at 3.2% — sustainability is the question.

UNP generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

CNI scores higher overall (62/100 vs 60/100), backed by strong 27.2% 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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Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

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