WallStSmart

Canadian Pacific Railway Ltd (CP)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Verizon Communications Inc generates 817% more annual revenue ($138.19B vs $15.08B). CP leads profitability with a 27.5% profit margin vs 12.4%. VZ appears more attractively valued with a PEG of 1.23. VZ earns a higher WallStSmart Score of 62/100 (C+).

CP

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 8.0Value: 7.3Quality: 5.0

VZ

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 2/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPSignificantly Overvalued (-274.7%)

Margin of Safety

-274.7%

Fair Value

$22.37

Current Price

$79.24

$56.87 premium

UndervaluedFair: $22.37Overvalued
VZSignificantly Overvalued (-82.4%)

Margin of Safety

-82.4%

Fair Value

$27.61

Current Price

$50.37

$22.76 premium

UndervaluedFair: $27.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Market CapQuality
$70.26B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

VZ5 strengths · Avg: 8.4/10
Market CapQuality
$214.72B10/10

Mega-cap, among the largest globally

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Free Cash FlowQuality
$4.37B8/10

Generating 4.4B in free cash flow

Areas to Watch

CP3 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

EPS GrowthGrowth
-7.4%2/10

Earnings declined 7.4%

VZ4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-53.3%2/10

Earnings declined 53.3%

Altman Z-ScoreHealth
1.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CP

The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.5% and operating margin at 44.0%.

Bull Case : VZ

The strongest argument for VZ centers on Market Cap, P/E Ratio, Price/Book. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bear Case : CP

The primary concerns for CP are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : VZ

The primary concerns for VZ are Revenue Growth, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

CP carries more volatility with a beta of 1.17 — expect wider price swings.

VZ is growing revenue faster at 2.0% — sustainability is the question.

VZ generates stronger free cash flow (4.4B), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

VZ scores higher overall (62/100 vs 56/100). Both earn "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 Railway Ltd

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.

Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

Want to dig deeper into these stocks?