WallStSmart

Canadian Pacific Railway Ltd (CP)vsCSX Corporation (CSX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Railway Ltd generates 7% more annual revenue ($15.08B vs $14.09B). CP leads profitability with a 27.5% profit margin vs 20.5%. CP appears more attractively valued with a PEG of 2.22. CP earns a higher WallStSmart Score of 56/100 (C).

CP

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0

CSX

Buy

53

out of 100

Grade: C-

Growth: 2.0Profit: 8.0Value: 4.7Quality: 5.0
Piotroski: 2/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPSignificantly Overvalued (-274.7%)

Margin of Safety

-274.7%

Fair Value

$22.37

Current Price

$78.24

$55.87 premium

UndervaluedFair: $22.37Overvalued
CSXSignificantly Overvalued (-294.8%)

Margin of Safety

-294.8%

Fair Value

$10.47

Current Price

$38.17

$27.70 premium

UndervaluedFair: $10.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP5 strengths · Avg: 9.2/10
Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Revenue GrowthGrowth
130.0%10/10

Revenue surging 130.0% year-over-year

Market CapQuality
$71.78B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

CSX4 strengths · Avg: 9.3/10
Operating MarginProfitability
32.7%10/10

Strong operational efficiency at 32.7%

Market CapQuality
$70.98B9/10

Large-cap with strong market position

Return on EquityProfitability
22.5%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Areas to Watch

CP2 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.4%2/10

Earnings declined 7.4%

CSX4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.433/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.242/10

Expensive relative to growth rate

Revenue GrowthGrowth
-90.0%2/10

Revenue declined 90.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : CP

The strongest argument for CP centers on Operating Margin, Revenue Growth, Market Cap. Profitability is solid with margins at 27.5% and operating margin at 44.0%. Revenue growth of 130.0% 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 20.5% and operating margin at 32.7%.

Bear Case : CP

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

Bear Case : CSX

The primary concerns for CSX are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CP profiles as a growth stock while CSX is a declining play — different risk/reward profiles.

CSX carries more volatility with a beta of 1.26 — expect wider price swings.

CP is growing revenue faster at 130.0% — sustainability is the question.

CP generates stronger free cash flow (729M), providing more financial flexibility.

Bottom Line

CP scores higher overall (56/100 vs 53/100), backed by strong 27.5% margins and 130.0% revenue growth. 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 Pacific Railway Ltd

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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