WallStSmart

Canadian National Railway Company (CNI)vsFreightcar America Inc (RAIL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 3732% more annual revenue ($17.76B vs $463.52M). CNI leads profitability with a 26.9% profit margin vs -2.7%. RAIL appears more attractively valued with a PEG of 0.64. 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

RAIL

Avoid

32

out of 100

Grade: F

Growth: 4.0Profit: 3.0Value: 6.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.23
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

Intrinsic value data unavailable for RAIL.

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

RAIL1 strengths · Avg: 8.0/10
PEG RatioValuation
0.648/10

Growing faster than its price suggests

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

RAIL4 concerns · Avg: 2.3/10
Market CapQuality
$232.82M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-24.2%2/10

Earnings declined 24.2%

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 : RAIL

The strongest argument for RAIL centers on PEG Ratio. PEG of 0.64 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 : RAIL

The primary concerns for RAIL are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 4.00 is elevated, increasing financial risk.

Key Dynamics to Monitor

CNI profiles as a mature stock while RAIL is a turnaround play — different risk/reward profiles.

RAIL carries more volatility with a beta of 1.46 — 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 32/100), backed by strong 26.9% margins and 11.3% revenue growth. Both earn "Strong Buy" and "Avoid" 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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Freightcar America Inc

INDUSTRIALS · RAILROADS · USA

FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.

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