WallStSmart

Canadian National Railway Company (CNI)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Union Pacific Corporation generates 42% more annual revenue ($24.51B vs $17.30B). UNP leads profitability with a 29.1% profit margin vs 27.3%. 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

UNP

Buy

60

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 5.3Quality: 5.0
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
UNPOvervalued (-10.4%)

Margin of Safety

-10.4%

Fair Value

$212.69

Current Price

$234.92

$22.23 premium

UndervaluedFair: $212.69Overvalued

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

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.4%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
40.9%10/10

Strong operational efficiency at 40.9%

Market CapQuality
$139.40B9/10

Large-cap with strong market position

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

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

UNP2 concerns · Avg: 2.0/10
PEG RatioValuation
2.632/10

Expensive relative to growth rate

Revenue GrowthGrowth
-60.0%2/10

Revenue declined 60.0%

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 : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.

Bear Case : CNI

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

Bear Case : UNP

The primary concerns for UNP are PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

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

UNP carries more volatility with a beta of 0.95 — expect wider price swings.

CNI is growing revenue faster at 2.4% — sustainability is the question.

UNP generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

CNI scores higher overall (68/100 vs 60/100), 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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Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

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