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CP vs GE

CP
Canadian Pacific Kansas City Limited
NEUTRAL
Price
$86.89
Market Cap
$77.97B
Sector
Industrials
AI Confidence
85%
GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CP
26.33
GE
37.71
Forward P/E
CP
20.19
GE
35.2
P/B Ratio
CP
2.32
GE
17.05
P/S Ratio
CP
5.17
GE
6.98
EV/EBITDA
CP
12.62
GE
30.66

Profitability

Gross Margin
CP
53.82%
GE
31.5%
Operating Margin
CP
44.02%
GE
19.55%
Profit Margin
CP
27.46%
GE
18.98%
ROE
CP
8.64%
GE
44.69%
ROA
CP
4.39%
GE
4.68%

Growth

Revenue Growth
CP
1.3%
GE
17.6%
Earnings Growth
CP
-7.4%
GE
37.4%

Financial Health

Debt/Equity
CP
0.5
GE
1.14
Current Ratio
CP
0.49
GE
1.04
Quick Ratio
CP
0.37
GE
0.69

Dividends

Dividend Yield
CP
0.76%
GE
0.62%
Payout Ratio
CP
19.38%
GE
17.89%

AI Verdict

CP NEUTRAL

CP exhibits a stable but mediocre Piotroski F-Score of 4/9, indicating a lack of strong financial momentum. While the company maintains exceptional operating margins (44.02%), it is significantly overvalued relative to its Graham Number ($52.69) and Intrinsic Value ($23.1). The disconnect between the current price ($86.89) and negative earnings growth (-7.40%) suggests the market is pricing in future synergies from the KCS merger that have yet to materialize in the data. Technical trends are heavily bearish (10/100), offsetting the optimistic analyst consensus.

Strengths
Exceptional operating margins of 44.02%
Strong gross profit margins of 53.82%
Manageable Debt/Equity ratio of 0.50
Risks
Significant overvaluation relative to deterministic fair value models
Negative YoY earnings growth (-7.40%) and stagnant revenue growth (1.30%)
Poor short-term liquidity with a current ratio of 0.49
GE NEUTRAL

GE Aerospace exhibits a stark divergence between its operational growth and its deterministic financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers impressive earnings growth (37.4% YoY) and high ROE (44.69%), it trades at a significant premium to both its Graham Number ($56.79) and Intrinsic Value ($237.48). The valuation is stretched with a PEG ratio of 5.24, suggesting that current price levels have priced in aggressive future success. Despite strong analyst 'strong_buy' recommendations, the combination of poor deterministic health and bearish insider activity warrants a cautious approach.

Strengths
Exceptional Return on Equity (ROE) of 44.69%
Strong earnings track record with consistent beats and high average surprise (25.12%)
Robust revenue growth (17.6% YoY) and earnings growth (37.4% YoY)
Risks
Weak deterministic health indicated by a Piotroski F-Score of 3/9
Extreme valuation metrics, specifically a PEG ratio of 5.24 and P/B of 17.05
Tight liquidity position with a Quick Ratio of 0.69

Compare Another Pair

CP vs GE: Head-to-Head Comparison

This page compares Canadian Pacific Kansas City Limited (CP) and GE Aerospace (GE) 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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