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CAT vs CNI

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
CNI
Canadian National Railway Company
NEUTRAL
Price
$114.60
Market Cap
$70.07B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
CNI
20.69
Forward P/E
CAT
26.48
CNI
17.9
P/B Ratio
CAT
16.05
CNI
4.46
P/S Ratio
CAT
5.09
CNI
4.05
EV/EBITDA
CAT
26.1
CNI
10.08

Profitability

Gross Margin
CAT
28.79%
CNI
56.67%
Operating Margin
CAT
16.02%
CNI
42.41%
Profit Margin
CAT
13.14%
CNI
27.28%
ROE
CAT
43.53%
CNI
22.15%
ROA
CAT
7.89%
CNI
7.7%

Growth

Revenue Growth
CAT
18.0%
CNI
2.4%
Earnings Growth
CAT
-11.4%
CNI
11.4%

Financial Health

Debt/Equity
CAT
2.07
CNI
1.0
Current Ratio
CAT
1.44
CNI
0.67
Quick Ratio
CAT
0.87
CNI
0.4

Dividends

Dividend Yield
CAT
0.85%
CNI
2.29%
Payout Ratio
CAT
31.05%
CNI
46.9%

AI Verdict

CAT NEUTRAL

CAT shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 18.0%
Strong ROE of 43.5%
Risks
High valuation with P/E of 39.0
Premium vs Graham Number ($139.4)
High debt burden with D/E of 2.07
CNI NEUTRAL

CNI presents a stable financial profile with a Piotroski F-Score of 4/9 and an absent Altman Z-Score, indicating a 'stable' but not 'strong' health trajectory. While the company boasts exceptional operating margins (42.41%) and a strong ROE (22.15%), it is currently trading at a significant premium to its Graham Number ($56.63), though it remains below its growth-based intrinsic value ($133.51). The disconnect between sluggish revenue growth (2.4%) and a high PEG ratio (2.52) suggests the stock may be overvalued relative to its current growth rate. Overall, CNI is a high-quality industrial compounder currently facing valuation headwinds and mediocre short-term financial momentum.

Strengths
Exceptional operating margins of 42.41% indicating high efficiency
Strong Return on Equity (ROE) of 22.15%
Consistent earnings growth (11.4% YoY) outpacing revenue growth
Risks
Low liquidity indicated by a current ratio of 0.67
Stagnant revenue growth (2.4% YoY) limiting organic expansion
High PEG ratio (2.52) suggesting overvaluation relative to growth

Compare Another Pair

CAT vs CNI: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Canadian National Railway Company (CNI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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