Canadian Pacific Railway Ltd (CP)vsVale SA ADR (VALE)
CP
Canadian Pacific Railway Ltd
$79.24
-0.28%
INDUSTRIALS · Cap: $70.26B
VALE
Vale SA ADR
$15.14
+1.82%
BASIC MATERIALS · Cap: $64.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Vale SA ADR generates 1317% more annual revenue ($213.59B vs $15.08B). CP leads profitability with a 27.5% profit margin vs 6.5%. CP appears more attractively valued with a PEG of 2.22. CP earns a higher WallStSmart Score of 56/100 (C).
CP
Buy56
out of 100
Grade: C
VALE
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-274.7%
Fair Value
$22.37
Current Price
$79.24
$56.87 premium
Margin of Safety
-47.9%
Fair Value
$11.75
Current Price
$15.14
$3.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.0%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 27.6%
Areas to Watch
Expensive relative to growth rate
1.3% revenue growth
Earnings declined 7.4%
Moderate valuation
0.5% revenue growth
ROE of 5.9% — below average capital efficiency
6.5% margin — thin
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 27.5% and operating margin at 44.0%.
Bull Case : VALE
The strongest argument for VALE centers on Market Cap, Price/Book, Operating Margin.
Bear Case : CP
The primary concerns for CP are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : VALE
The primary concerns for VALE are P/E Ratio, Revenue Growth, Return on Equity.
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 55/100), backed by strong 27.5% 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.
Vale SA ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.
Compare with Other RAILROADS Stocks
Want to dig deeper into these stocks?