WallStSmart

Canadian Pacific Kansas City Limited (CP)vsLB Foster Company (FSTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Kansas City Limited generates 2560% more annual revenue ($14.98B vs $563.36M). CP leads profitability with a 27.2% profit margin vs 2.0%. FSTR appears more attractively valued with a PEG of 0.35. FSTR earns a higher WallStSmart Score of 55/100 (C).

CP

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.42

FSTR

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 4.5Value: 5.3Quality: 8.0
Piotroski: 5/9Altman Z: 3.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPUndervalued (+60.1%)

Margin of Safety

+60.1%

Fair Value

$210.24

Current Price

$89.93

$120.31 discount

UndervaluedFair: $210.24Overvalued
FSTRSignificantly Overvalued (-15.5%)

Margin of Safety

-15.5%

Fair Value

$27.31

Current Price

$41.42

$14.11 premium

UndervaluedFair: $27.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Market CapQuality
$80.03B9/10

Large-cap with strong market position

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

FSTR4 strengths · Avg: 9.0/10
PEG RatioValuation
0.3510/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.9%8/10

Revenue surging 23.9% year-over-year

Areas to Watch

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

Expensive relative to growth rate

P/E RatioValuation
27.7x4/10

Moderate valuation

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

FSTR4 concerns · Avg: 3.0/10
Market CapQuality
$434.14M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Operating MarginProfitability
1.7%3/10

Operating margin of 1.7%

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 27.2% and operating margin at 37.6%.

Bull Case : FSTR

The strongest argument for FSTR centers on PEG Ratio, Altman Z-Score, Price/Book. Revenue growth of 23.9% demonstrates continued momentum. PEG of 0.35 suggests the stock is reasonably priced for its growth.

Bear Case : CP

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

Bear Case : FSTR

The primary concerns for FSTR are Market Cap, Return on Equity, Profit Margin. A P/E of 40.3x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

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

FSTR is growing revenue faster at 23.9% — sustainability is the question.

CP generates stronger free cash flow (307M), providing more financial flexibility.

Bottom Line

FSTR scores higher overall (55/100 vs 54/100) and 23.9% revenue growth. CP offers better value entry with a 60.1% margin of safety. 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 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.

LB Foster Company

INDUSTRIALS · RAILROADS · USA

LB Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects globally. The company is headquartered in Pittsburgh, Pennsylvania.

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