Canadian Pacific Kansas City Limited (CP)vsUnion Pacific Corporation (UNP)
CP
Canadian Pacific Kansas City Limited
$85.07
-1.66%
INDUSTRIALS · Cap: $77.61B
UNP
Union Pacific Corporation
$272.13
+0.10%
INDUSTRIALS · Cap: $163.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Union Pacific Corporation generates 64% more annual revenue ($25.41B vs $15.45B). UNP leads profitability with a 28.8% profit margin vs 25.0%. CP appears more attractively valued with a PEG of 2.22. UNP earns a higher WallStSmart Score of 66/100 (B-).
CP
Buy60
out of 100
Grade: C
UNP
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.4%
Fair Value
$211.78
Current Price
$85.07
$126.71 discount
Margin of Safety
-89.0%
Fair Value
$144.86
Current Price
$272.13
$127.27 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
Every $100 of equity generates 35 in profit
Strong operational efficiency at 41.0%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 2.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Earnings declined 13.5%
Distress zone — elevated risk
Trading at 8.3x book value
Elevated debt levels
Expensive relative to growth rate
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 : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 28.8% and operating margin at 41.0%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, EPS Growth.
Bear Case : UNP
The primary concerns for UNP are Price/Book, Debt/Equity, PEG Ratio. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Key Dynamics to Monitor
CP carries more volatility with a beta of 1.22 — expect wider price swings.
CP is growing revenue faster at 12.6% — sustainability is the question.
UNP generates stronger free cash flow (2.2B), providing more financial flexibility.
Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UNP scores higher overall (66/100 vs 60/100), backed by strong 28.8% margins and 11.5% revenue growth. 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.
Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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