WallStSmart

CNH Industrial N.V. (CNH)vsCanadian National Railway Company (CNI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CNH Industrial N.V. generates 5% more annual revenue ($18.09B vs $17.30B). CNI leads profitability with a 27.3% profit margin vs 2.8%. CNH appears more attractively valued with a PEG of 0.57. CNI earns a higher WallStSmart Score of 68/100 (B-).

CNH

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 4.0Value: 8.0Quality: 6.3
Piotroski: 3/9Altman Z: 1.54

CNI

Strong Buy

68

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNHUndervalued (+45.2%)

Margin of Safety

+45.2%

Fair Value

$23.36

Current Price

$10.08

$13.28 discount

UndervaluedFair: $23.36Overvalued
CNIUndervalued (+8.9%)

Margin of Safety

+8.9%

Fair Value

$116.76

Current Price

$112.12

$4.64 discount

UndervaluedFair: $116.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNH2 strengths · Avg: 8.0/10
PEG RatioValuation
0.578/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
42.4%10/10

Strong operational efficiency at 42.4%

Market CapQuality
$68.02B9/10

Large-cap with strong market position

Return on EquityProfitability
22.2%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
27.3%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

CNH4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
1.9%3/10

Operating margin of 1.9%

CNI4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Debt/EquityHealth
1.013/10

Elevated debt levels

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CNH

The strongest argument for CNH centers on PEG Ratio, Price/Book. PEG of 0.57 suggests the stock is reasonably priced for its growth.

Bull Case : CNI

The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 27.3% and operating margin at 42.4%.

Bear Case : CNH

The primary concerns for CNH are Altman Z-Score, Return on Equity, Profit Margin. Thin 2.8% margins leave little buffer for downturns.

Bear Case : CNI

The primary concerns for CNI are Revenue Growth, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

CNH carries more volatility with a beta of 1.33 — expect wider price swings.

CNH is growing revenue faster at 5.8% — sustainability is the question.

CNI generates stronger free cash flow (826M), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CNI scores higher overall (68/100 vs 57/100), backed by strong 27.3% margins. CNH offers better value entry with a 45.2% 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.

CNH Industrial N.V.

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company is headquartered in Basildon, the United Kingdom.

Canadian National Railway Company

INDUSTRIALS · RAILROADS · USA

Canadian National Railway Company, is engaged in the rail and related transportation business. The company is headquartered in Montreal, Canada.

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