Canadian Pacific Railway Ltd (CP)vsWestern Digital Corporation (WDC)
CP
Canadian Pacific Railway Ltd
$78.24
-0.28%
INDUSTRIALS · Cap: $71.78B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Pacific Railway Ltd generates 40% more annual revenue ($15.08B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 27.5%. WDC appears more attractively valued with a PEG of 0.69. CP earns a higher WallStSmart Score of 56/100 (C).
CP
Buy56
out of 100
Grade: C
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-274.7%
Fair Value
$22.37
Current Price
$78.24
$55.87 premium
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.0%
Revenue surging 130.0% year-over-year
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Earnings declined 7.4%
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CP
The strongest argument for CP centers on Operating Margin, Revenue Growth, Market Cap. Profitability is solid with margins at 27.5% and operating margin at 44.0%. Revenue growth of 130.0% demonstrates continued momentum.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : CP
The primary concerns for CP are PEG Ratio, EPS Growth.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
CP profiles as a growth stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
CP is growing revenue faster at 130.0% — sustainability is the question.
CP generates stronger free cash flow (729M), providing more financial flexibility.
Bottom Line
CP scores higher overall (56/100 vs 55/100), backed by strong 27.5% margins and 130.0% revenue growth. 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
Compare with Other RAILROADS Stocks
Want to dig deeper into these stocks?