Canadian Pacific Railway Ltd (CP)vsNorfolk Southern Corporation (NSC)
CP
Canadian Pacific Railway Ltd
$78.24
-0.28%
INDUSTRIALS · Cap: $71.78B
NSC
Norfolk Southern Corporation
$281.09
+1.04%
INDUSTRIALS · Cap: $63.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Railway Ltd generates 24% more annual revenue ($15.08B vs $12.18B). CP leads profitability with a 27.5% profit margin vs 23.6%. CP appears more attractively valued with a PEG of 2.22. CP earns a higher WallStSmart Score of 56/100 (C).
CP
Buy56
out of 100
Grade: C
NSC
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-274.7%
Fair Value
$22.37
Current Price
$78.24
$55.87 premium
Margin of Safety
-262.5%
Fair Value
$87.52
Current Price
$281.09
$193.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.0%
Revenue surging 130.0% year-over-year
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 31.2%
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Earnings declined 7.4%
Expensive relative to growth rate
Revenue declined 1.7%
Earnings declined 11.4%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : NSC
The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.6% and operating margin at 31.2%.
Bear Case : CP
The primary concerns for CP are PEG Ratio, EPS Growth.
Bear Case : NSC
The primary concerns for NSC are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
CP profiles as a growth stock while NSC is a declining play — different risk/reward profiles.
NSC carries more volatility with a beta of 1.30 — 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.
Norfolk Southern Corporation
INDUSTRIALS · RAILROADS · USA
The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.
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