Canadian Pacific Kansas City Limited (CP)vsUnion Pacific Corporation (UNP)
CP
Canadian Pacific Kansas City Limited
$89.93
+0.48%
INDUSTRIALS · Cap: $79.25B
UNP
Union Pacific Corporation
$272.32
-0.45%
INDUSTRIALS · Cap: $158.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Union Pacific Corporation generates 65% more annual revenue ($24.70B vs $14.98B). UNP leads profitability with a 29.2% profit margin vs 27.2%. CP appears more attractively valued with a PEG of 2.22. UNP earns a higher WallStSmart Score of 60/100 (C).
CP
Buy54
out of 100
Grade: C-
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.0%
Fair Value
$209.53
Current Price
$89.93
$119.60 discount
Margin of Safety
-88.0%
Fair Value
$136.65
Current Price
$272.32
$135.67 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 37.6%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Reasonable price relative to book value
Every $100 of equity generates 37 in profit
Strong operational efficiency at 40.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
Trading at 8.3x book value
3.2% revenue growth
Elevated debt levels
Expensive relative to growth rate
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 27.2% and operating margin at 37.6%.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : UNP
The primary concerns for UNP are Price/Book, Revenue Growth, Debt/Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk.
Key Dynamics to Monitor
CP profiles as a declining stock while UNP is a value play — different risk/reward profiles.
CP carries more volatility with a beta of 1.21 — expect wider price swings.
UNP is growing revenue faster at 3.2% — sustainability is the question.
UNP generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
UNP scores higher overall (60/100 vs 54/100), backed by strong 29.2% margins. CP offers better value entry with a 60.0% 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.
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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