Canadian Pacific Railway Ltd (CP)vsFreightcar America Inc (RAIL)
CP
Canadian Pacific Railway Ltd
$79.24
-0.28%
INDUSTRIALS · Cap: $70.26B
RAIL
Freightcar America Inc
$8.16
+1.24%
INDUSTRIALS · Cap: $153.78M
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Railway Ltd generates 2910% more annual revenue ($15.08B vs $500.99M). CP leads profitability with a 27.5% profit margin vs 7.6%. RAIL appears more attractively valued with a PEG of 0.64. CP earns a higher WallStSmart Score of 56/100 (C).
CP
Buy56
out of 100
Grade: C
RAIL
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
$79.24
$56.87 premium
Margin of Safety
+74.8%
Fair Value
$51.01
Current Price
$8.16
$42.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.0%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Attractively priced relative to earnings
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
1.3% revenue growth
Earnings declined 7.4%
2.1% earnings growth
Smaller company, higher risk/reward
7.6% margin — thin
ROE of -8.8% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : CP
The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.5% and operating margin at 44.0%.
Bull Case : RAIL
The strongest argument for RAIL centers on P/E Ratio, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.
Bear Case : CP
The primary concerns for CP are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : RAIL
The primary concerns for RAIL are EPS Growth, Market Cap, Profit Margin.
Key Dynamics to Monitor
RAIL carries more volatility with a beta of 1.51 — expect wider price swings.
CP is growing revenue faster at 1.3% — sustainability is the question.
CP generates stronger free cash flow (729M), providing more financial flexibility.
Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CP scores higher overall (56/100 vs 53/100), backed by strong 27.5% margins. RAIL offers better value entry with a 74.8% 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 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.
Freightcar America Inc
INDUSTRIALS · RAILROADS · USA
FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.
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