Canadian Pacific Kansas City Limited (CP)vsWestinghouse Air Brake Technologies Corp (WAB)
CP
Canadian Pacific Kansas City Limited
$85.07
-1.66%
INDUSTRIALS · Cap: $77.61B
WAB
Westinghouse Air Brake Technologies Corp
$287.18
-1.39%
INDUSTRIALS · Cap: $47.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Kansas City Limited generates 29% more annual revenue ($15.45B vs $11.98B). CP leads profitability with a 25.0% profit margin vs 10.6%. WAB appears more attractively valued with a PEG of 1.37. WAB earns a higher WallStSmart Score of 64/100 (C+).
CP
Buy60
out of 100
Grade: C
WAB
Buy64
out of 100
Grade: C+
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
+11.8%
Fair Value
$288.53
Current Price
$287.18
$1.35 discount
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
17.5% revenue growth
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Earnings declined 13.5%
Distress zone — elevated risk
Premium valuation, high expectations priced in
Distress zone — elevated risk
Weak financial health signals
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 : WAB
The strongest argument for WAB centers on Revenue Growth. Revenue growth of 17.5% 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, EPS 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 mature stock while WAB is a growth 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 17.5% — sustainability is the question.
CP generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
WAB scores higher overall (64/100 vs 60/100) and 17.5% revenue growth. CP offers better value entry with a 60.4% 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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