Canadian Pacific Kansas City Limited (CP)vsVale SA ADR (VALE)
CP
Canadian Pacific Kansas City Limited
$86.04
+0.96%
INDUSTRIALS · Cap: $75.65B
VALE
Vale SA ADR
$16.63
+2.72%
BASIC MATERIALS · Cap: $69.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Vale SA ADR generates 1334% more annual revenue ($214.86B vs $14.98B). CP leads profitability with a 27.2% profit margin vs 7.3%. VALE appears more attractively valued with a PEG of 0.33. VALE earns a higher WallStSmart Score of 67/100 (B-).
CP
Buy54
out of 100
Grade: C-
VALE
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.4%
Fair Value
$217.19
Current Price
$86.04
$131.15 discount
Margin of Safety
+81.8%
Fair Value
$95.70
Current Price
$16.63
$79.07 discount
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
Growing faster than its price suggests
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 28.1%
Earnings expanding 22.0% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
2.7% revenue growth
ROE of 6.8% — below average capital efficiency
7.3% margin — thin
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 : VALE
The strongest argument for VALE centers on PEG Ratio, Market Cap, Price/Book. PEG of 0.33 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 : VALE
The primary concerns for VALE are Revenue Growth, Return on Equity, Profit Margin.
Key Dynamics to Monitor
CP profiles as a declining stock while VALE is a value play — different risk/reward profiles.
CP carries more volatility with a beta of 1.22 — expect wider price swings.
VALE is growing revenue faster at 2.7% — sustainability is the question.
VALE generates stronger free cash flow (700M), providing more financial flexibility.
Bottom Line
VALE scores higher overall (67/100 vs 54/100). CP offers better value entry with a 61.4% 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.
Vale SA ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.
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