WallStSmart

Canadian Pacific Railway Ltd (CP)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 431% more annual revenue ($80.04B vs $15.08B). CP leads profitability with a 27.5% profit margin vs 26.7%. WFC appears more attractively valued with a PEG of 1.66. WFC earns a higher WallStSmart Score of 72/100 (B).

CP

Buy

56

out of 100

Grade: C

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

WFC

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 0.43
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
WFCUndervalued (+53.8%)

Margin of Safety

+53.8%

Fair Value

$173.78

Current Price

$80.26

$93.52 discount

UndervaluedFair: $173.78Overvalued

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

WFC6 strengths · Avg: 8.5/10
Market CapQuality
$245.65B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Free Cash FlowQuality
$4.12B8/10

Generating 4.1B in free cash flow

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%

WFC2 concerns · Avg: 3.0/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.432/10

Distress zone — elevated risk

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 : WFC

The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.9%.

Bear Case : CP

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

Bear Case : WFC

The primary concerns for WFC are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

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

WFC is growing revenue faster at 5.0% — sustainability is the question.

WFC generates stronger free cash flow (4.1B), providing more financial flexibility.

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

Bottom Line

WFC scores higher overall (72/100 vs 56/100), backed by strong 26.7% margins. Both earn "Strong 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.

Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

Want to dig deeper into these stocks?