Canadian National Railway Company (CNI)vsCanadian Pacific Kansas City Limited (CP)
CNI
Canadian National Railway Company
$118.90
-1.37%
INDUSTRIALS · Cap: $72.51B
CP
Canadian Pacific Kansas City Limited
$85.07
-1.66%
INDUSTRIALS · Cap: $77.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian National Railway Company generates 15% more annual revenue ($17.76B vs $15.45B). CNI leads profitability with a 26.9% profit margin vs 25.0%. CP appears more attractively valued with a PEG of 2.22. CNI earns a higher WallStSmart Score of 69/100 (B-).
CNI
Strong Buy69
out of 100
Grade: B-
CP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+2.5%
Fair Value
$109.02
Current Price
$118.90
$9.88 discount
Margin of Safety
+60.4%
Fair Value
$211.78
Current Price
$85.07
$126.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.3%
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 27 of every $100 in revenue as profit
Strong operational efficiency at 39.0%
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
Earnings declined 13.5%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CNI
The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 26.9% and operating margin at 40.3%. Revenue growth of 11.3% demonstrates continued momentum.
Bull Case : CP
The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 25.0% and operating margin at 39.0%. Revenue growth of 12.6% demonstrates continued momentum.
Bear Case : CNI
The primary concerns for CNI are PEG Ratio, Debt/Equity, Altman Z-Score.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, EPS Growth.
Key Dynamics to Monitor
CP carries more volatility with a beta of 1.22 — expect wider price swings.
CP is growing revenue faster at 12.6% — sustainability is the question.
CP generates stronger free cash flow (960M), providing more financial flexibility.
Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CNI scores higher overall (69/100 vs 60/100), backed by strong 26.9% margins and 11.3% revenue growth. CP offers better value entry with a 60.4% 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 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.
Visit Website →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.
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