WallStSmart

Canadian National Railway Company (CNI)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 116% more annual revenue ($37.30B vs $17.30B). CNI leads profitability with a 27.3% profit margin vs 1.9%. 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

WBD

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 4.5Value: 2.0Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNIUndervalued (+22.9%)

Margin of Safety

+22.9%

Fair Value

$137.97

Current Price

$100.97

$37.00 discount

UndervaluedFair: $137.97Overvalued
WBDSignificantly Overvalued (-106.3%)

Margin of Safety

-106.3%

Fair Value

$13.57

Current Price

$27.22

$13.65 premium

UndervaluedFair: $13.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNI5 strengths · Avg: 9.0/10
Operating MarginProfitability
42.4%10/10

Strong operational efficiency at 42.4%

Market CapQuality
$60.25B9/10

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

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

WBD3 strengths · Avg: 8.3/10
Market CapQuality
$67.68B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B 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

WBD4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

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 : WBD

The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.

Bear Case : CNI

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

Bear Case : WBD

The primary concerns for WBD are EPS Growth, Return on Equity, Profit Margin. A P/E of 94.1x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

WBD carries more volatility with a beta of 1.68 — expect wider price swings.

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

WBD generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CNI scores higher overall (68/100 vs 51/100), 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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Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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