WallStSmart

Canadian Pacific Kansas City Limited (CP)vsCSX Corporation (CSX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Kansas City Limited generates 6% more annual revenue ($14.98B vs $14.15B). CP leads profitability with a 27.2% profit margin vs 21.5%. CSX appears more attractively valued with a PEG of 2.09. CSX earns a higher WallStSmart Score of 65/100 (C+).

CP

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0

CSX

Buy

65

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPUndervalued (+61.5%)

Margin of Safety

+61.5%

Fair Value

$217.94

Current Price

$83.50

$134.44 discount

UndervaluedFair: $217.94Overvalued
CSXUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$74.29

Current Price

$44.72

$29.57 discount

UndervaluedFair: $74.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Market CapQuality
$73.80B9/10

Large-cap with strong market position

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

CSX5 strengths · Avg: 9.0/10
Operating MarginProfitability
36.2%10/10

Strong operational efficiency at 36.2%

Market CapQuality
$83.10B9/10

Large-cap with strong market position

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

EPS GrowthGrowth
26.5%8/10

Earnings expanding 26.5% YoY

Areas to Watch

CP4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

CSX4 concerns · Avg: 3.8/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Debt/EquityHealth
1.433/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CP

The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.2% and operating margin at 37.6%.

Bull Case : CSX

The strongest argument for CSX centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 21.5% and operating margin at 36.2%.

Bear Case : CP

The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : CSX

The primary concerns for CSX are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

CP profiles as a declining stock while CSX is a value play — different risk/reward profiles.

CSX carries more volatility with a beta of 1.24 — expect wider price swings.

CSX is growing revenue faster at 1.7% — sustainability is the question.

CSX generates stronger free cash flow (729M), providing more financial flexibility.

Bottom Line

CSX scores higher overall (65/100 vs 54/100), backed by strong 21.5% margins. CP offers better value entry with a 61.5% margin of safety. 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 Pacific Kansas City Limited

INDUSTRIALS · RAILROADS · USA

Canadian Pacific Railway Limited, owns and operates a transcontinental freight railway in Canada and the United States. The company is headquartered in Calgary, Canada.

CSX Corporation

INDUSTRIALS · RAILROADS · USA

CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. Based in Richmond, Virginia, USA after the merger, in 2003 the CSX Corporation headquarters moved to Jacksonville, Florida.

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