Canadian Pacific Railway Ltd (CP)vsLB Foster Company (FSTR)
CP
Canadian Pacific Railway Ltd
$79.24
-0.28%
INDUSTRIALS · Cap: $70.26B
FSTR
LB Foster Company
$28.04
-0.04%
INDUSTRIALS · Cap: $292.15M
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Railway Ltd generates 2692% more annual revenue ($15.08B vs $540.01M). CP leads profitability with a 27.5% profit margin vs 1.4%. FSTR appears more attractively valued with a PEG of 0.19. CP earns a higher WallStSmart Score of 56/100 (C).
CP
Buy56
out of 100
Grade: C
FSTR
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-274.7%
Fair Value
$22.37
Current Price
$79.24
$56.87 premium
Margin of Safety
-572.5%
Fair Value
$4.69
Current Price
$28.04
$23.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.0%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 25.1% year-over-year
Areas to Watch
Expensive relative to growth rate
1.3% revenue growth
Earnings declined 7.4%
Smaller company, higher risk/reward
ROE of 4.2% — below average capital efficiency
1.4% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CP
The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.5% and operating margin at 44.0%.
Bull Case : FSTR
The strongest argument for FSTR centers on PEG Ratio, Altman Z-Score, Price/Book. Revenue growth of 25.1% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : CP
The primary concerns for CP are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : FSTR
The primary concerns for FSTR are Market Cap, Return on Equity, Profit Margin. A P/E of 40.7x leaves little room for execution misses. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
CP profiles as a value stock while FSTR is a growth play — different risk/reward profiles.
CP carries more volatility with a beta of 1.17 — expect wider price swings.
FSTR is growing revenue faster at 25.1% — sustainability is the question.
CP generates stronger free cash flow (729M), providing more financial flexibility.
Bottom Line
CP scores higher overall (56/100 vs 55/100), backed by strong 27.5% margins. 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 Railway Ltd
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.
LB Foster Company
INDUSTRIALS · RAILROADS · USA
LB Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects globally. The company is headquartered in Pittsburgh, Pennsylvania.
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