WallStSmart

Canadian Pacific Kansas City Limited (CP)vsWestinghouse Air Brake Technologies Corp (WAB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Pacific Kansas City Limited generates 30% more annual revenue ($14.98B vs $11.51B). CP leads profitability with a 27.2% profit margin vs 10.5%. WAB appears more attractively valued with a PEG of 1.37. WAB earns a higher WallStSmart Score of 64/100 (C+).

CP

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0

WAB

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 6.0Quality: 5.0
Piotroski: 2/9Altman Z: 1.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPUndervalued (+61.5%)

Margin of Safety

+61.5%

Fair Value

$217.94

Current Price

$83.50

$134.44 discount

UndervaluedFair: $217.94Overvalued
WABUndervalued (+16.2%)

Margin of Safety

+16.2%

Fair Value

$303.67

Current Price

$263.49

$40.18 discount

UndervaluedFair: $303.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CP4 strengths · Avg: 9.0/10
Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Market CapQuality
$73.80B9/10

Large-cap with strong market position

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

WAB0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

CP4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

WAB3 concerns · Avg: 3.7/10
P/E RatioValuation
37.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 27.2% and operating margin at 37.6%.

Bull Case : WAB

Revenue growth of 13.0% demonstrates continued momentum. PEG of 1.37 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 : WAB

The primary concerns for WAB are P/E Ratio, Altman Z-Score, Piotroski F-Score.

Key Dynamics to Monitor

CP profiles as a declining stock while WAB is a value play — different risk/reward profiles.

CP carries more volatility with a beta of 1.22 — expect wider price swings.

WAB is growing revenue faster at 13.0% — sustainability is the question.

CP generates stronger free cash flow (307M), providing more financial flexibility.

Bottom Line

WAB scores higher overall (64/100 vs 54/100) and 13.0% revenue growth. CP offers better value entry with a 61.5% margin of safety. 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 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.

Westinghouse Air Brake Technologies Corp

INDUSTRIALS · RAILROADS · USA

Wabtec Corporation (derived from Westinghouse Air Brake Technologies Corporation) is an American company formed by the merger of the Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corporation in 1999. It is headquartered in Pittsburgh, Pennsylvania.

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