Canadian Pacific Kansas City Limited (CP)vsFreightcar America Inc (RAIL)
CP
Canadian Pacific Kansas City Limited
$89.23
+0.46%
INDUSTRIALS · Cap: $78.44B
RAIL
Freightcar America Inc
$6.81
+2.25%
INDUSTRIALS · Cap: $232.82M
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 3233% more annual revenue ($15.45B vs $463.52M). CP leads profitability with a 25.0% profit margin vs -2.7%. RAIL appears more attractively valued with a PEG of 0.64. CP earns a higher WallStSmart Score of 60/100 (C).
CP
Buy60
out of 100
Grade: C
RAIL
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.5%
Fair Value
$212.47
Current Price
$89.23
$123.24 discount
Intrinsic value data unavailable for RAIL.
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
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Earnings declined 13.5%
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of -8.8% — below average capital efficiency
Revenue declined 4.6%
Earnings declined 24.2%
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 : RAIL
The strongest argument for RAIL centers on PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, EPS Growth.
Bear Case : RAIL
The primary concerns for RAIL are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 4.00 is elevated, increasing financial risk.
Key Dynamics to Monitor
CP profiles as a mature stock while RAIL is a turnaround play — different risk/reward profiles.
RAIL carries more volatility with a beta of 1.46 — 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.
Bottom Line
CP scores higher overall (60/100 vs 32/100), backed by strong 25.0% margins and 12.6% revenue growth. Both earn "Buy" and "Avoid" 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.
Freightcar America Inc
INDUSTRIALS · RAILROADS · USA
FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.
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