WallStSmart

Canadian Pacific Kansas City Limited (CP)vsCSX Corporation (CSX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Kansas City Limited generates 6% more annual revenue ($15.45B vs $14.51B). CP leads profitability with a 25.0% profit margin vs 22.2%. CSX appears more attractively valued with a PEG of 1.72. CSX earns a higher WallStSmart Score of 71/100 (B).

CP

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.41

CSX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 1.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPUndervalued (+60.4%)

Margin of Safety

+60.4%

Fair Value

$211.78

Current Price

$85.07

$126.71 discount

UndervaluedFair: $211.78Overvalued
CSXUndervalued (+34.5%)

Margin of Safety

+34.5%

Fair Value

$71.63

Current Price

$46.51

$25.12 discount

UndervaluedFair: $71.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
39.0%10/10

Strong operational efficiency at 39.0%

Market CapQuality
$77.61B9/10

Large-cap with strong market position

Profit MarginProfitability
25.0%9/10

Keeps 25 of every $100 in revenue as profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

CSX5 strengths · Avg: 9.0/10
Operating MarginProfitability
38.4%10/10

Strong operational efficiency at 38.4%

Market CapQuality
$86.97B9/10

Large-cap with strong market position

Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

EPS GrowthGrowth
22.7%8/10

Earnings expanding 22.7% YoY

Areas to Watch

CP4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

P/E RatioValuation
28.7x4/10

Moderate valuation

EPS GrowthGrowth
-13.5%2/10

Earnings declined 13.5%

Altman Z-ScoreHealth
1.412/10

Distress zone — elevated risk

CSX4 concerns · Avg: 3.5/10
PEG RatioValuation
1.724/10

Expensive relative to growth rate

P/E RatioValuation
27.3x4/10

Moderate valuation

Debt/EquityHealth
1.373/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CP

The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 25.0% and operating margin at 39.0%. Revenue growth of 12.6% demonstrates continued momentum.

Bull Case : CSX

The strongest argument for CSX centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 22.2% and operating margin at 38.4%. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : CP

The primary concerns for CP are PEG Ratio, P/E Ratio, EPS Growth.

Bear Case : CSX

The primary concerns for CSX are PEG Ratio, P/E Ratio, Debt/Equity.

Key Dynamics to Monitor

CP carries more volatility with a beta of 1.22 — expect wider price swings.

CP is growing revenue faster at 12.6% — sustainability is the question.

CP generates stronger free cash flow (960M), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CSX scores higher overall (71/100 vs 60/100), backed by strong 22.2% margins and 10.1% revenue growth. CP offers better value entry with a 60.4% margin of safety. 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 Pacific Kansas City Limited

INDUSTRIALS · RAILROADS · USA

Canadian Pacific Railway Limited, owns and operates a transcontinental freight railway in Canada and the United States. The company is headquartered in Calgary, Canada.

CSX Corporation

INDUSTRIALS · RAILROADS · USA

CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. Based in Richmond, Virginia, USA after the merger, in 2003 the CSX Corporation headquarters moved to Jacksonville, Florida.

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