WallStSmart

Canadian National Railway Company (CNI)vsParker-Hannifin Corporation (PH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 18% more annual revenue ($20.46B vs $17.30B). CNI leads profitability with a 27.3% profit margin vs 17.3%. CNI appears more attractively valued with a PEG of 2.52. CNI earns a higher WallStSmart Score of 68/100 (B-).

CNI

Strong Buy

68

out of 100

Grade: B-

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

PH

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.78
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+8.9%)

Margin of Safety

+8.9%

Fair Value

$116.76

Current Price

$112.12

$4.64 discount

UndervaluedFair: $116.76Overvalued

Intrinsic value data unavailable for PH.

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
$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

PH3 strengths · Avg: 8.7/10
Market CapQuality
$119.59B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

Areas to Watch

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

PH4 concerns · Avg: 3.0/10
P/E RatioValuation
34.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

PEG RatioValuation
3.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.0%2/10

Earnings declined 9.0%

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 : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 21.7%.

Bear Case : CNI

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

Bear Case : PH

The primary concerns for PH are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

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

PH carries more volatility with a beta of 1.25 — expect wider price swings.

PH is growing revenue faster at 9.1% — sustainability is the question.

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

Bottom Line

CNI scores higher overall (68/100 vs 54/100), 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.

Visit Website →

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

Want to dig deeper into these stocks?