WallStSmart

Canadian Pacific Railway Ltd (CP)vsUniversal Corporation (UVV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Railway Ltd generates 405% more annual revenue ($15.08B vs $2.99B). CP leads profitability with a 27.5% profit margin vs 3.7%. CP appears more attractively valued with a PEG of 2.22. UVV earns a higher WallStSmart Score of 61/100 (C+).

CP

Buy

56

out of 100

Grade: C

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

UVV

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 5.5Value: 7.3Quality: 5.0
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
UVVUndervalued (+74.6%)

Margin of Safety

+74.6%

Fair Value

$207.79

Current Price

$51.95

$155.84 discount

UndervaluedFair: $207.79Overvalued

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

UVV3 strengths · Avg: 9.3/10
P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
32.0%8/10

Earnings expanding 32.0% YoY

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%

UVV3 concerns · Avg: 2.7/10
Market CapQuality
$1.32B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

PEG RatioValuation
2.892/10

Expensive relative to growth rate

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 : UVV

The strongest argument for UVV centers on P/E Ratio, Price/Book, EPS Growth.

Bear Case : CP

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

Bear Case : UVV

The primary concerns for UVV are Market Cap, Profit Margin, PEG Ratio. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

UVV is growing revenue faster at 6.1% — 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

UVV scores higher overall (61/100 vs 56/100). 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.

Universal Corporation

CONSUMER DEFENSIVE · TOBACCO · USA

Universal Corporation processes and supplies leaf tobacco and plant ingredients worldwide. The company is headquartered in Richmond, Virginia.

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