WallStSmart

Canadian National Railway Company (CNI)vsWestinghouse Air Brake Technologies Corp (WAB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian National Railway Company generates 50% more annual revenue ($17.28B vs $11.51B). CNI leads profitability with a 27.2% profit margin vs 10.5%. WAB appears more attractively valued with a PEG of 1.37. WAB earns a higher WallStSmart Score of 64/100 (C+).

CNI

Buy

62

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 4.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.48

WAB

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 6.0Quality: 5.0
Piotroski: 2/9Altman Z: 1.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+8.8%)

Margin of Safety

+8.8%

Fair Value

$116.54

Current Price

$109.99

$6.55 discount

UndervaluedFair: $116.54Overvalued
WABUndervalued (+16.2%)

Margin of Safety

+16.2%

Fair Value

$303.67

Current Price

$263.49

$40.18 discount

UndervaluedFair: $303.67Overvalued

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
$66.35B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%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

WAB0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

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

1.1% earnings growth

Debt/EquityHealth
1.013/10

Elevated debt levels

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

WAB3 concerns · Avg: 3.7/10
P/E RatioValuation
37.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : WAB

Revenue growth of 13.0% demonstrates continued momentum. PEG of 1.37 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 : WAB

The primary concerns for WAB are P/E Ratio, Altman Z-Score, Piotroski F-Score.

Key Dynamics to Monitor

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

CNI carries more volatility with a beta of 0.99 — expect wider price swings.

WAB is growing revenue faster at 13.0% — sustainability is the question.

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

Bottom Line

WAB scores higher overall (64/100 vs 62/100) and 13.0% revenue growth. Both earn "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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Westinghouse Air Brake Technologies Corp

INDUSTRIALS · RAILROADS · USA

Wabtec Corporation (derived from Westinghouse Air Brake Technologies Corporation) is an American company formed by the merger of the Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corporation in 1999. It is headquartered in Pittsburgh, Pennsylvania.

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