Canadian Pacific Kansas City Limited (CP)vsTrinity Industries Inc (TRN)
CP
Canadian Pacific Kansas City Limited
$83.50
+0.45%
INDUSTRIALS · Cap: $73.80B
TRN
Trinity Industries Inc
$35.85
+3.49%
INDUSTRIALS · Cap: $2.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 626% more annual revenue ($14.98B vs $2.06B). CP leads profitability with a 27.2% profit margin vs 12.4%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 67/100 (B-).
CP
Buy54
out of 100
Grade: C-
TRN
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.5%
Fair Value
$217.94
Current Price
$83.50
$134.44 discount
Margin of Safety
-18.6%
Fair Value
$26.70
Current Price
$35.85
$9.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 37.6%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
Revenue declined 16.0%
Negative free cash flow — burning cash
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 27.2% and operating margin at 37.6%.
Bull Case : TRN
The strongest argument for TRN centers on P/E Ratio, Return on Equity, PEG Ratio. 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, Revenue Growth.
Bear Case : TRN
The primary concerns for TRN are Revenue Growth, Free Cash Flow, Debt/Equity. Debt-to-equity of 5.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
TRN carries more volatility with a beta of 1.45 — expect wider price swings.
CP is growing revenue faster at -2.5% — sustainability is the question.
CP generates stronger free cash flow (307M), providing more financial flexibility.
Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TRN scores higher overall (67/100 vs 54/100). CP offers better value entry with a 61.5% 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.
Visit Website →Compare with Other RAILROADS Stocks
Want to dig deeper into these stocks?