WallStSmart

Canadian Pacific Railway Ltd (CP)vsTrinity Industries Inc (TRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Railway Ltd generates 599% more annual revenue ($15.08B vs $2.16B). CP leads profitability with a 27.5% profit margin vs 11.7%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 69/100 (B-).

CP

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 7.3Quality: 5.0

TRN

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 10.0Quality: 4.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPSignificantly Overvalued (-274.7%)

Margin of Safety

-274.7%

Fair Value

$22.37

Current Price

$78.24

$55.87 premium

UndervaluedFair: $22.37Overvalued
TRNUndervalued (+78.4%)

Margin of Safety

+78.4%

Fair Value

$146.95

Current Price

$29.60

$117.35 discount

UndervaluedFair: $146.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP5 strengths · Avg: 9.2/10
Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Revenue GrowthGrowth
130.0%10/10

Revenue surging 130.0% year-over-year

Market CapQuality
$71.78B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

TRN5 strengths · Avg: 9.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
574.0%10/10

Earnings expanding 574.0% YoY

Return on EquityProfitability
23.2%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

CP2 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.4%2/10

Earnings declined 7.4%

TRN3 concerns · Avg: 1.7/10
Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

Free Cash FlowQuality
$-60.40M2/10

Negative free cash flow — burning cash

Debt/EquityHealth
5.051/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : TRN

The strongest argument for TRN centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bear Case : CP

The primary concerns for CP are PEG Ratio, EPS Growth.

Bear Case : TRN

The primary concerns for TRN are Revenue Growth, Free Cash Flow, Debt/Equity. Debt-to-equity of 5.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

CP profiles as a growth stock while TRN is a declining play — different risk/reward profiles.

TRN carries more volatility with a beta of 1.46 — 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

TRN scores higher overall (69/100 vs 56/100). Both earn "Strong 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.

Trinity Industries Inc

INDUSTRIALS · RAILROADS · USA

Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.

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