WallStSmart

Canadian National Railway Company (CNI)vsLB Foster Company (FSTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 3081% more annual revenue ($17.76B vs $558.35M). CNI leads profitability with a 26.9% profit margin vs 2.0%. FSTR appears more attractively valued with a PEG of 0.80. CNI earns a higher WallStSmart Score of 69/100 (B-).

CNI

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.48

FSTR

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 4.7Quality: 8.0
Piotroski: 5/9Altman Z: 3.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+2.5%)

Margin of Safety

+2.5%

Fair Value

$109.08

Current Price

$122.25

$13.17 discount

UndervaluedFair: $109.08Overvalued
FSTRSignificantly Overvalued (-16.0%)

Margin of Safety

-16.0%

Fair Value

$27.20

Current Price

$37.59

$10.39 premium

UndervaluedFair: $27.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
40.3%10/10

Strong operational efficiency at 40.3%

Market CapQuality
$74.63B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
26.9%9/10

Keeps 27 of every $100 in revenue as profit

FSTR3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

CNI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.033/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

FSTR4 concerns · Avg: 3.3/10
P/E RatioValuation
34.8x4/10

Premium valuation, high expectations priced in

Market CapQuality
$387.97M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

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 26.9% and operating margin at 40.3%. Revenue growth of 11.3% demonstrates continued momentum.

Bull Case : FSTR

The strongest argument for FSTR centers on Altman Z-Score, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : CNI

The primary concerns for CNI are Debt/Equity, PEG Ratio, Altman Z-Score.

Bear Case : FSTR

The primary concerns for FSTR are P/E Ratio, Market Cap, Return on Equity. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

CNI profiles as a mature stock while FSTR is a value play — different risk/reward profiles.

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

CNI is growing revenue faster at 11.3% — sustainability is the question.

CNI generates stronger free cash flow (916M), providing more financial flexibility.

Bottom Line

CNI scores higher overall (69/100 vs 52/100), backed by strong 26.9% margins and 11.3% revenue growth. 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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LB Foster Company

INDUSTRIALS · RAILROADS · USA

LB Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects globally. The company is headquartered in Pittsburgh, Pennsylvania.

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