WallStSmart

Canadian Pacific Kansas City Limited (CP)vsFederal Signal Corporation (FSS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Kansas City Limited generates 512% more annual revenue ($14.98B vs $2.45B). CP leads profitability with a 27.2% profit margin vs 11.7%. FSS appears more attractively valued with a PEG of 1.92. FSS earns a higher WallStSmart Score of 64/100 (C+).

CP

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.42

FSS

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 5.0Quality: 7.5
Piotroski: 3/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPUndervalued (+59.6%)

Margin of Safety

+59.6%

Fair Value

$207.43

Current Price

$90.65

$116.78 discount

UndervaluedFair: $207.43Overvalued

Intrinsic value data unavailable for FSS.

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
$81.07B9/10

Large-cap with strong market position

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

FSS3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

Areas to Watch

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

Expensive relative to growth rate

P/E RatioValuation
28.9x4/10

Moderate valuation

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

FSS3 concerns · Avg: 3.7/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : FSS

The strongest argument for FSS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 18.7% demonstrates continued momentum.

Bear Case : CP

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

Bear Case : FSS

The primary concerns for FSS are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

CP profiles as a declining stock while FSS is a growth play — different risk/reward profiles.

FSS carries more volatility with a beta of 1.23 — expect wider price swings.

FSS is growing revenue faster at 18.7% — sustainability is the question.

CP generates stronger free cash flow (307M), providing more financial flexibility.

Bottom Line

FSS scores higher overall (64/100 vs 54/100) and 18.7% revenue growth. CP offers better value entry with a 59.6% 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.

Federal Signal Corporation

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

Federal Signal Corporation designs, manufactures, and supplies a suite of integrated products and solutions for municipal, government, industrial, and commercial customers in the United States, Canada, Europe, and internationally. The company is headquartered in Oak Brook, Illinois.

Visit Website →

Want to dig deeper into these stocks?