WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 3584% more annual revenue ($17.28B vs $469.01M). CNI leads profitability with a 27.2% profit margin vs 6.3%. RAIL appears more attractively valued with a PEG of 0.64. CNI earns a higher WallStSmart Score of 59/100 (C).

CNI

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 4.0Quality: 4.0
Piotroski: 5/9Altman Z: 1.48

RAIL

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 3.5Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIFair Value (-0.4%)

Margin of Safety

-0.4%

Fair Value

$105.89

Current Price

$120.38

$14.49 premium

UndervaluedFair: $105.89Overvalued

Intrinsic value data unavailable for RAIL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI4 strengths · Avg: 9.3/10
Operating MarginProfitability
38.4%10/10

Strong operational efficiency at 38.4%

Market CapQuality
$72.98B9/10

Large-cap with strong market position

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

RAIL3 strengths · Avg: 9.3/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-2.2310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Areas to Watch

CNI4 concerns · Avg: 2.8/10
EPS GrowthGrowth
1.1%4/10

1.1% earnings growth

Debt/EquityHealth
1.053/10

Elevated debt levels

PEG RatioValuation
2.662/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

RAIL4 concerns · Avg: 2.5/10
Market CapQuality
$150.42M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-33.2%2/10

Revenue declined 33.2%

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 27.2% and operating margin at 38.4%.

Bull Case : RAIL

The strongest argument for RAIL centers on P/E Ratio, Debt/Equity, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bear Case : CNI

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

Bear Case : RAIL

The primary concerns for RAIL are Market Cap, Profit Margin, Return on Equity.

Key Dynamics to Monitor

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

RAIL carries more volatility with a beta of 1.49 — expect wider price swings.

CNI is growing revenue faster at -0.5% — sustainability is the question.

CNI generates stronger free cash flow (828M), providing more financial flexibility.

Bottom Line

CNI scores higher overall (59/100 vs 41/100), backed by strong 27.2% margins. Both earn "Buy" and "Hold" 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 →

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.

Want to dig deeper into these stocks?