WallStSmart

Canadian Pacific Kansas City Limited (CP)vsFreightcar America Inc (RAIL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Kansas City Limited generates 3095% more annual revenue ($14.98B vs $469.01M). CP leads profitability with a 27.2% profit margin vs 6.3%. RAIL appears more attractively valued with a PEG of 0.64. CP earns a higher WallStSmart Score of 54/100 (C-).

CP

Buy

54

out of 100

Grade: C-

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

RAIL

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 3.5Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.23
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

Intrinsic value data unavailable for RAIL.

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

RAIL3 strengths · Avg: 9.3/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-2.2310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.648/10

Growing faster than its price suggests

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%

RAIL4 concerns · Avg: 2.5/10
Market CapQuality
$150.42M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-33.2%2/10

Revenue declined 33.2%

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 : RAIL

The strongest argument for RAIL centers on P/E Ratio, Debt/Equity, 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, P/E Ratio, Revenue Growth.

Bear Case : RAIL

The primary concerns for RAIL are Market Cap, Profit Margin, Return on Equity.

Key Dynamics to Monitor

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

RAIL carries more volatility with a beta of 1.49 — expect wider price swings.

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

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

Bottom Line

CP scores higher overall (54/100 vs 41/100), backed by strong 27.2% margins. Both earn "Buy" and "Hold" 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.

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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