Canadian Pacific Kansas City Limited (CP)vsWarner Bros Discovery Inc (WBD)
CP
Canadian Pacific Kansas City Limited
$86.04
+0.96%
INDUSTRIALS · Cap: $75.65B
WBD
Warner Bros Discovery Inc
$27.11
-0.04%
COMMUNICATION SERVICES · Cap: $67.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 149% more annual revenue ($37.30B vs $14.98B). CP leads profitability with a 27.2% profit margin vs 1.9%. CP appears more attractively valued with a PEG of 2.22. CP earns a higher WallStSmart Score of 54/100 (C-).
CP
Buy54
out of 100
Grade: C-
WBD
Buy51
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
+60.6%
Fair Value
$71.08
Current Price
$27.11
$43.97 discount
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
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Revenue declined 5.7%
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 : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
CP profiles as a declining stock while WBD is a value play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.57 — expect wider price swings.
CP is growing revenue faster at -2.5% — sustainability is the question.
CP generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
CP scores higher overall (54/100 vs 51/100), backed by strong 27.2% margins. WBD offers better value entry with a 60.6% 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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