WallStSmart

Canadian Pacific Railway Ltd (CP)vsUSA Rare Earth, Inc. (USAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CP leads profitability with a 27.5% profit margin vs 0.0%. CP earns a higher WallStSmart Score of 56/100 (C).

CP

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 8.0Value: 7.3Quality: 5.0

USAR

Avoid

22

out of 100

Grade: F

Growth: 4.3Profit: 3.0Value: 5.0Quality: 5.3
Piotroski: 3/9Altman Z: -1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPSignificantly Overvalued (-274.7%)

Margin of Safety

-274.7%

Fair Value

$22.37

Current Price

$79.24

$56.87 premium

UndervaluedFair: $22.37Overvalued

Intrinsic value data unavailable for USAR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Market CapQuality
$70.26B9/10

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

USAR0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

CP3 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

EPS GrowthGrowth
-7.4%2/10

Earnings declined 7.4%

USAR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

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 27.5% and operating margin at 44.0%.

Bull Case : USAR

USAR has a balanced fundamental profile.

Bear Case : CP

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

Bear Case : USAR

The primary concerns for USAR are Revenue Growth, EPS Growth, Profit Margin.

Key Dynamics to Monitor

CP carries more volatility with a beta of 1.17 — expect wider price swings.

CP is growing revenue faster at 1.3% — sustainability is the question.

CP generates stronger free cash flow (729M), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CP scores higher overall (56/100 vs 22/100), backed by strong 27.5% margins. Both earn "Buy" and "Avoid" 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.

USA Rare Earth, Inc.

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

USA Rare Earth, Inc. engages in mining, processing, and supplying rare earths and other critical minerals. The company is headquartered in Stillwater, Oklahoma.

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