Canadian Pacific Kansas City Limited (CP)vsWest Pharmaceutical Services Inc (WST)
CP
Canadian Pacific Kansas City Limited
$86.04
+0.96%
INDUSTRIALS · Cap: $75.65B
WST
West Pharmaceutical Services Inc
$325.92
+1.21%
HEALTHCARE · Cap: $22.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 365% more annual revenue ($14.98B vs $3.22B). CP leads profitability with a 27.2% profit margin vs 16.9%. CP appears more attractively valued with a PEG of 2.22. WST earns a higher WallStSmart Score of 67/100 (B-).
CP
Buy54
out of 100
Grade: C-
WST
Strong Buy67
out of 100
Grade: B-
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
-32.4%
Fair Value
$185.95
Current Price
$325.92
$139.97 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
Earnings expanding 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
Expensive relative to growth rate
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 : WST
The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
CP profiles as a declining stock while WST is a growth play — different risk/reward profiles.
CP carries more volatility with a beta of 1.22 — expect wider price swings.
WST is growing revenue faster at 21.0% — sustainability is the question.
CP generates stronger free cash flow (307M), providing more financial flexibility.
Bottom Line
WST scores higher overall (67/100 vs 54/100), backed by strong 16.9% margins and 21.0% revenue growth. CP offers better value entry with a 61.4% margin of safety. 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 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.
West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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