Canadian Pacific Kansas City Limited (CP)vsNorfolk Southern Corporation (NSC)
CP
Canadian Pacific Kansas City Limited
$85.07
-1.66%
INDUSTRIALS · Cap: $77.61B
NSC
Norfolk Southern Corporation
$309.00
-1.28%
INDUSTRIALS · Cap: $70.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 23% more annual revenue ($15.45B vs $12.54B). CP leads profitability with a 25.0% profit margin vs 21.0%. CP appears more attractively valued with a PEG of 2.22. CP earns a higher WallStSmart Score of 60/100 (C).
CP
Buy60
out of 100
Grade: C
NSC
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.4%
Fair Value
$211.78
Current Price
$85.07
$126.71 discount
Intrinsic value data unavailable for NSC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 39.0%
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 35.3%
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Earnings declined 13.5%
Distress zone — elevated risk
Moderate valuation
Elevated debt levels
Expensive relative to growth rate
Earnings declined 4.4%
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 25.0% and operating margin at 39.0%. Revenue growth of 12.6% demonstrates continued momentum.
Bull Case : NSC
The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 21.0% and operating margin at 35.3%. Revenue growth of 11.4% demonstrates continued momentum.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, EPS Growth.
Bear Case : NSC
The primary concerns for NSC are P/E Ratio, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
NSC carries more volatility with a beta of 1.27 — expect wider price swings.
CP is growing revenue faster at 12.6% — sustainability is the question.
CP generates stronger free cash flow (960M), providing more financial flexibility.
Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CP scores higher overall (60/100 vs 59/100), backed by strong 25.0% margins and 12.6% 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 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.
Norfolk Southern Corporation
INDUSTRIALS · RAILROADS · USA
The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.
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