Canadian Pacific Kansas City Limited (CP)vsWaters Corporation (WAT)
CP
Canadian Pacific Kansas City Limited
$86.04
+0.96%
INDUSTRIALS · Cap: $75.65B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 297% more annual revenue ($14.98B vs $3.77B). CP leads profitability with a 27.2% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. CP earns a higher WallStSmart Score of 54/100 (C-).
CP
Buy54
out of 100
Grade: C-
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.4%
Fair Value
$217.19
Current Price
$86.04
$131.15 discount
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 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
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
Premium valuation, high expectations priced in
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 : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
CP profiles as a declining stock while WAT is a growth play — different risk/reward profiles.
CP carries more volatility with a beta of 1.22 — expect wider price swings.
WAT is growing revenue faster at 91.5% — sustainability is the question.
CP generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CP scores higher overall (54/100 vs 52/100), backed by strong 27.2% 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 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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
Compare with Other RAILROADS Stocks
Want to dig deeper into these stocks?