Canadian Pacific Kansas City Limited (CP) vs Wabtec (WAB)

Canadian Pacific Kansas City Limited and Wabtec are both Railroads companies. Canadian Pacific Kansas City Limited is the larger, with a market value of $76.8B against $49.0B — 1.6× the size. Canadian Pacific Kansas City Limited trades at the lower P/E: 27.9× against 38.6×. Wabtec grew revenue faster over the last twelve months: 13.4% against 4.57%. Canadian Pacific Kansas City Limited has the higher net margin (25.0% vs 10.6%) and the lower return on invested capital (4.91% vs 7.16%). Both pay a dividend; Canadian Pacific Kansas City Limited yields more (0.68% vs 0.50%). Across the 23 metrics below, Wabtec leads on 12 and Canadian Pacific Kansas City Limited on 11.

Valuation

Metric CP WAB Railroads median
P/E 27.87 38.64 26.88
P/S 6.89 4.06 2.58
P/B 2.24 4.33 4.33
Price to free cash flow 43.80 28.32 26.65
EV/EBITDA 17.04 22.12 13.50
EV/Sales 8.50 4.56 4.56
Earnings yield 3.59% 2.59% 3.59%
Free cash flow yield 2.28% 3.53% 3.41%

Profitability

Metric CP WAB Railroads median
Gross margin 69.79% 34.97% 30.61%
Operating margin 36.73% 16.39% 24.29%
Net margin 24.99% 10.59% 10.59%
Free cash flow margin 15.74% 14.35% 8.43%
Return on equity 8.16% 11.49% 11.49%
Return on assets 4.43% 5.83% 3.98%
Return on invested capital 4.91% 7.16% 7.59%

Growth

Metric CP WAB Railroads median
Revenue growth (TTM) 4.57% 13.43% 2.97%
EPS growth (last fiscal year) 11.38% 13.08% —
Revenue growth, 5-year CAGR 13.40% 8.13% 5.27%
Net income growth, 5-year CAGR 10.19% 23.09% 0.88%

Health

Metric CP WAB Railroads median
Debt to equity 0.53 0.58 0.58
Current ratio 0.59 1.12 1.03
Net debt to EBITDA 3.02 2.11 2.71

Dividend

Metric CP WAB Railroads median
Dividend yield 0.68% 0.50% 2.17%
Payout ratio — 0.17 0.19

Size

Metric CP WAB Railroads median
Market cap 76.76b 49.02b 2.22b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack