WallStSmart

Canadian National Railway Company (CNI)vsNorfolk Southern Corporation (NSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 42% more annual revenue ($17.30B vs $12.18B). CNI leads profitability with a 27.3% profit margin vs 23.6%. 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

NSC

Buy

53

out of 100

Grade: C-

Growth: 2.0Profit: 8.0Value: 4.7Quality: 4.5
Piotroski: 4/9
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
NSCSignificantly Overvalued (-262.5%)

Margin of Safety

-262.5%

Fair Value

$87.52

Current Price

$281.09

$193.57 premium

UndervaluedFair: $87.52Overvalued

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

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Market CapQuality
$63.12B9/10

Large-cap with strong market position

Profit MarginProfitability
23.6%9/10

Keeps 24 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

NSC4 concerns · Avg: 2.0/10
PEG RatioValuation
3.852/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.7%2/10

Revenue declined 1.7%

EPS GrowthGrowth
-11.4%2/10

Earnings declined 11.4%

Free Cash FlowQuality
$-412.00M2/10

Negative free cash flow — burning cash

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 : NSC

The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.6% and operating margin at 31.2%.

Bear Case : CNI

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

Bear Case : NSC

The primary concerns for NSC are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

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

NSC carries more volatility with a beta of 1.30 — 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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Norfolk Southern Corporation

INDUSTRIALS · RAILROADS · USA

The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.

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