Canadian Pacific Kansas City Limited (CP)vsRaytheon Technologies Corp (RTX)
CP
Canadian Pacific Kansas City Limited
$86.95
+3.17%
INDUSTRIALS · Cap: $77.62B
RTX
Raytheon Technologies Corp
$172.79
+1.90%
INDUSTRIALS · Cap: $237.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 499% more annual revenue ($90.37B vs $15.08B). CP leads profitability with a 27.5% profit margin vs 8.0%. CP appears more attractively valued with a PEG of 2.22. RTX earns a higher WallStSmart Score of 59/100 (C).
CP
Buy56
out of 100
Grade: C
RTX
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.8%
Fair Value
$219.63
Current Price
$86.95
$132.68 discount
Margin of Safety
-52.1%
Fair Value
$115.75
Current Price
$172.79
$57.04 premium
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
Mega-cap, among the largest globally
Earnings expanding 32.5% YoY
Generating 1.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
1.3% revenue growth
Earnings declined 7.4%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : RTX
The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : RTX
The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
CP carries more volatility with a beta of 1.19 — expect wider price swings.
RTX is growing revenue faster at 8.7% — sustainability is the question.
RTX generates stronger free cash flow (1.2B), providing more financial flexibility.
Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RTX scores higher overall (59/100 vs 56/100). CP offers better value entry with a 61.8% 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 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.
Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
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