Canadian Pacific Railway Ltd (CP)vsUnion Pacific Corporation (UNP)
CP
Canadian Pacific Railway Ltd
$78.24
-0.28%
INDUSTRIALS · Cap: $71.78B
UNP
Union Pacific Corporation
$234.92
+0.32%
INDUSTRIALS · Cap: $139.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Union Pacific Corporation generates 63% more annual revenue ($24.51B vs $15.08B). UNP leads profitability with a 29.1% profit margin vs 27.5%. CP appears more attractively valued with a PEG of 2.22. UNP earns a higher WallStSmart Score of 60/100 (C).
CP
Buy56
out of 100
Grade: C
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-274.7%
Fair Value
$22.37
Current Price
$78.24
$55.87 premium
Margin of Safety
-10.4%
Fair Value
$212.69
Current Price
$234.92
$22.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.0%
Revenue surging 130.0% year-over-year
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Every $100 of equity generates 40 in profit
Strong operational efficiency at 40.9%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Earnings declined 7.4%
Expensive relative to growth rate
Revenue declined 60.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.
Bear Case : CP
The primary concerns for CP are PEG Ratio, EPS Growth.
Bear Case : UNP
The primary concerns for UNP are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
CP profiles as a growth stock while UNP is a declining play — different risk/reward profiles.
CP carries more volatility with a beta of 1.17 — expect wider price swings.
CP is growing revenue faster at 130.0% — sustainability is the question.
UNP generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
UNP scores higher overall (60/100 vs 56/100), backed by strong 29.1% margins. 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.
Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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