Canadian Pacific Kansas City Limited (CP)vsTrinity Industries Inc (TRN)
CP
Canadian Pacific Kansas City Limited
$84.47
-0.74%
INDUSTRIALS · Cap: $77.61B
TRN
Trinity Industries Inc
$25.54
-4.38%
INDUSTRIALS · Cap: $2.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 656% more annual revenue ($15.45B vs $2.04B). CP leads profitability with a 25.0% profit margin vs 16.6%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 75/100 (B).
CP
Buy60
out of 100
Grade: C
TRN
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.4%
Fair Value
$211.78
Current Price
$84.47
$127.31 discount
Margin of Safety
-79.2%
Fair Value
$17.68
Current Price
$25.54
$7.86 premium
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
Attractively priced relative to earnings
Earnings expanding 620.0% YoY
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Earnings declined 13.5%
Distress zone — elevated risk
Revenue declined 4.2%
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 : TRN
The strongest argument for TRN centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 16.6% and operating margin at 12.1%. PEG of 0.69 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 : TRN
The primary concerns for TRN are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.57 is elevated, increasing financial risk.
Key Dynamics to Monitor
CP profiles as a mature stock while TRN is a declining play — different risk/reward profiles.
TRN carries more volatility with a beta of 1.34 — 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
TRN scores higher overall (75/100 vs 60/100), backed by strong 16.6% margins. CP offers better value entry with a 60.4% margin of safety. Both earn "Strong 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.
Trinity Industries Inc
INDUSTRIALS · RAILROADS · USA
Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.
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