CNI vs WAB

For growth investors, Westinghouse Air Brake Technologies Corporation (WAB) is the stronger pick with 7.

5% revenue growth year-over-year, versus 1. 4% for Canadian National Railway Company (CNI). Canadian National Railway Company (CNI) offers the better valuation at 20. 0x trailing P/E (13. 8x forward), making it the more compelling value choice. Analysts rate Westinghouse Air Brake Technologies Corporation (WAB) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Canadian National Railway Company (CNI) is the cheapest at 20.

0x versus Westinghouse Air Brake Technologies Corporation at 38. 9x. On forward P/E, Canadian National Railway Company is actually cheaper at 13. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Westinghouse Air Brake Technologies Corporation wins at 0. 97x versus Canadian National Railway Company's 1. 60x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Westinghouse Air Brake Technologies Corporation (WAB) delivered a total return of +229.

0%, compared to +9. 1% for Canadian National Railway Company (CNI). Over 10 years, the gap is even starker: WAB returned +247. 1% versus CNI's +121. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Canadian National Railway Company (CNI) is the lower-risk stock at 0.

67β versus Westinghouse Air Brake Technologies Corporation's 1. 11β — meaning WAB is approximately 66% more volatile than CNI relative to the S&P 500. On balance sheet safety, Westinghouse Air Brake Technologies Corporation (WAB) carries a lower debt/equity ratio of 50% versus 101% for Canadian National Railway Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Westinghouse Air Brake Technologies Corporation (WAB) is pulling ahead at 7.

5% versus 1. 4% for Canadian National Railway Company (CNI). On earnings-per-share growth, the picture is similar: Westinghouse Air Brake Technologies Corporation grew EPS 13. 1% year-over-year, compared to 7. 8% for Canadian National Railway Company. Over a 3-year CAGR, WAB leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Canadian National Railway Company (CNI) is the more profitable company, earning 27.

3% net margin versus 10. 5% for Westinghouse Air Brake Technologies Corporation — meaning it keeps 27. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CNI leads at 38. 1% versus 16. 7% for WAB. At the gross margin level — before operating expenses — CNI leads at 44. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Westinghouse Air Brake Technologies Corporation (WAB) is the more undervalued stock at a PEG of 0. 97x versus Canadian National Railway Company's 1. 60x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Canadian National Railway Company (CNI) trades at 13. 8x forward P/E versus 25. 0x for Westinghouse Air Brake Technologies Corporation — 11. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WAB: 9. 5% to $291. 00.

All stocks in this comparison pay dividends.

Canadian National Railway Company (CNI) offers the highest yield at 2. 3%, versus 0. 4% for Westinghouse Air Brake Technologies Corporation (WAB).

For long-horizon retirement investors, Canadian National Railway Company (CNI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

67), 2. 3% yield, +121. 9% 10Y return). Both have compounded well over 10 years (CNI: +121. 9%, WAB: +247. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

CNI pays a dividend while WAB does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.