WallStSmart

Canadian National Railway Company (CNI)vsCSX Corporation (CSX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 23% more annual revenue ($17.30B vs $14.09B). CNI leads profitability with a 27.3% profit margin vs 20.5%. CNI appears more attractively valued with a PEG of 2.12. CNI earns a higher WallStSmart Score of 68/100 (B-).

CNI

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 9.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.48

CSX

Buy

53

out of 100

Grade: C-

Growth: 2.0Profit: 8.0Value: 4.7Quality: 5.0
Piotroski: 2/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+23.2%)

Margin of Safety

+23.2%

Fair Value

$138.47

Current Price

$98.41

$40.06 discount

UndervaluedFair: $138.47Overvalued
CSXSignificantly Overvalued (-294.8%)

Margin of Safety

-294.8%

Fair Value

$10.47

Current Price

$38.17

$27.70 premium

UndervaluedFair: $10.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Strong operational efficiency at 42.4%

Market CapQuality
$61.42B9/10

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

CSX4 strengths · Avg: 9.3/10
Operating MarginProfitability
32.7%10/10

Strong operational efficiency at 32.7%

Market CapQuality
$70.98B9/10

Large-cap with strong market position

Return on EquityProfitability
22.5%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Areas to Watch

CNI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Debt/EquityHealth
1.013/10

Elevated debt levels

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

CSX4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.433/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.242/10

Expensive relative to growth rate

Revenue GrowthGrowth
-90.0%2/10

Revenue declined 90.0%

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : CSX

The strongest argument for CSX centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 20.5% and operating margin at 32.7%.

Bear Case : CNI

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

Bear Case : CSX

The primary concerns for CSX are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CNI profiles as a value stock while CSX is a declining play — different risk/reward profiles.

CSX carries more volatility with a beta of 1.26 — expect wider price swings.

CNI is growing revenue faster at 2.4% — sustainability is the question.

CNI generates stronger free cash flow (997M), providing more financial flexibility.

Bottom Line

CNI scores higher overall (68/100 vs 53/100), backed by strong 27.3% 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 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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CSX Corporation

INDUSTRIALS · RAILROADS · USA

CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. Based in Richmond, Virginia, USA after the merger, in 2003 the CSX Corporation headquarters moved to Jacksonville, Florida.

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