WallStSmart

Canadian National Railway Company (CNI)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 46% more annual revenue ($17.30B vs $11.83B). CNI leads profitability with a 27.3% profit margin vs 22.1%. CNI appears more attractively valued with a PEG of 2.12. 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

WMB

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 9.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.37
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
WMBUndervalued (+29.0%)

Margin of Safety

+29.0%

Fair Value

$100.15

Current Price

$73.81

$26.34 discount

UndervaluedFair: $100.15Overvalued

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

WMB4 strengths · Avg: 9.5/10
Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Market CapQuality
$90.96B9/10

Large-cap with strong market position

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

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

WMB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.474/10

Expensive relative to growth rate

P/E RatioValuation
34.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-485.00M2/10

Negative free cash flow — burning cash

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 : WMB

The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 41.2%.

Bear Case : CNI

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

Bear Case : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

CNI profiles as a value stock while WMB is a mature play — different risk/reward profiles.

CNI carries more volatility with a beta of 0.95 — expect wider price swings.

WMB is growing revenue faster at 8.7% — sustainability is the question.

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

Bottom Line

CNI scores higher overall (68/100 vs 67/100), backed by strong 27.3% margins. WMB offers better value entry with a 29.0% 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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Williams Companies Inc

ENERGY · OIL & GAS MIDSTREAM · USA

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

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