WallStSmart

Canadian Pacific Kansas City Limited (CP)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 85% more annual revenue ($27.78B vs $14.98B). CP leads profitability with a 27.2% profit margin vs 8.9%. PCAR appears more attractively valued with a PEG of 1.12. PCAR earns a higher WallStSmart Score of 56/100 (C).

CP

Buy

54

out of 100

Grade: C-

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

PCAR

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.7Quality: 6.5
Piotroski: 1/9Altman Z: 2.09
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
PCARSignificantly Overvalued (-37.6%)

Margin of Safety

-37.6%

Fair Value

$84.77

Current Price

$118.06

$33.30 premium

UndervaluedFair: $84.77Overvalued

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

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$59.41B9/10

Large-cap with strong market position

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%

PCAR2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

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 : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.12 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 : PCAR

The primary concerns for PCAR are Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

CP profiles as a declining stock while PCAR is a value play — different risk/reward profiles.

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

CP is growing revenue faster at -2.5% — sustainability is the question.

PCAR generates stronger free cash flow (825M), providing more financial flexibility.

Bottom Line

PCAR scores higher overall (56/100 vs 54/100). 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.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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