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CP vs CSX
Revenue, margins, valuation, and 5-year total return — side by side.
Railroads
CP vs CSX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Railroads | Railroads |
| Market Cap | $76.49B | $82.61B |
| Revenue (TTM) | $14.98B | $14.15B |
| Net Income (TTM) | $4.08B | $3.05B |
| Gross Margin | 47.9% | 37.5% |
| Operating Margin | 37.0% | 33.4% |
| Forward P/E | 22.6x | 23.4x |
| Total Debt | $23.19B | $19.35B |
| Cash & Equiv. | $184M | $670M |
CP vs CSX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Canadian Pacific Ka… (CP) | 100 | 170.6 | +70.6% |
| CSX Corporation (CSX) | 100 | 186.3 | +86.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CP vs CSX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
CP carries the broadest edge in this set and is the clearest fit for growth exposure and sleep-well-at-night.
- Rev growth 3.7%, EPS growth 13.3%, 3Y rev CAGR 19.6%
- Lower volatility, beta 0.70, Low D/E 49.5%, current ratio 0.49x
- 3.7% revenue growth vs CSX's -3.1%
CSX is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 21 yrs, beta 0.77, yield 1.2%
- 459.3% 10Y total return vs CP's 230.2%
- PEG 4.57 vs CP's 4.84
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 3.7% revenue growth vs CSX's -3.1% | |
| Value | Lower P/E (22.6x vs 23.4x) | |
| Quality / Margins | 27.2% margin vs CSX's 21.6% | |
| Stability / Safety | Beta 0.70 vs CSX's 0.77, lower leverage | |
| Dividends | 1.2% yield, 21-year raise streak, vs CP's 0.7% | |
| Momentum (1Y) | +58.6% vs CP's +16.3% | |
| Efficiency (ROA) | 7.0% ROA vs CP's 5.5%, ROIC 10.9% vs 6.0% |
CP vs CSX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
CP vs CSX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — CP and CSX each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CP and CSX operate at a comparable scale, with $15.0B and $14.2B in trailing revenue. CP is the more profitable business, keeping 27.2% of every revenue dollar as net income compared to CSX's 21.6%. On growth, CSX holds the edge at +1.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $15.0B | $14.2B |
| EBITDAEarnings before interest/tax | $7.6B | $6.4B |
| Net IncomeAfter-tax profit | $4.1B | $3.0B |
| Free Cash FlowCash after capex | $2.7B | $4.1B |
| Gross MarginGross profit ÷ Revenue | +47.9% | +37.5% |
| Operating MarginEBIT ÷ Revenue | +37.0% | +33.4% |
| Net MarginNet income ÷ Revenue | +27.2% | +21.6% |
| FCF MarginFCF ÷ Revenue | +18.1% | +29.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -2.5% | +1.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -3.1% | +26.5% |
Valuation Metrics
CP leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 25.8x trailing earnings, CP trades at a 11% valuation discount to CSX's 28.9x P/E. Adjusting for growth (PEG ratio), CP offers better value at 5.52x vs CSX's 5.64x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $76.5B | $82.6B |
| Enterprise ValueMkt cap + debt − cash | $93.3B | $101.3B |
| Trailing P/EPrice ÷ TTM EPS | 25.78x | 28.87x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.62x | 23.39x |
| PEG RatioP/E ÷ EPS growth rate | 5.52x | 5.64x |
| EV / EBITDAEnterprise value multiple | 16.70x | 17.47x |
| Price / SalesMarket cap ÷ Revenue | 6.92x | 5.86x |
| Price / BookPrice ÷ Book value/share | 2.28x | 6.30x |
| Price / FCFMarket cap ÷ FCF | 48.12x | 48.28x |
Profitability & Efficiency
CSX leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
CSX delivers a 23.5% return on equity — every $100 of shareholder capital generates $24 in annual profit, vs $10 for CP. CP carries lower financial leverage with a 0.50x debt-to-equity ratio, signaling a more conservative balance sheet compared to CSX's 1.47x. On the Piotroski fundamental quality scale (0–9), CP scores 7/9 vs CSX's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +10.1% | +23.5% |
| ROA (TTM)Return on assets | +5.5% | +7.0% |
| ROICReturn on invested capital | +6.0% | +10.9% |
| ROCEReturn on capital employed | +6.9% | +11.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 0.50x | 1.47x |
| Net DebtTotal debt minus cash | $23.0B | $18.7B |
| Cash & Equiv.Liquid assets | $184M | $670M |
| Total DebtShort + long-term debt | $23.2B | $19.4B |
| Interest CoverageEBIT ÷ Interest expense | 7.08x | 5.66x |
Total Returns (Dividends Reinvested)
CSX leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CSX five years ago would be worth $13,589 today (with dividends reinvested), compared to $11,081 for CP. Over the past 12 months, CSX leads with a +58.6% total return vs CP's +16.3%. The 3-year compound annual growth rate (CAGR) favors CSX at 12.9% vs CP's 2.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +14.7% | +23.0% |
| 1-Year ReturnPast 12 months | +16.3% | +58.6% |
| 3-Year ReturnCumulative with dividends | +7.4% | +44.1% |
| 5-Year ReturnCumulative with dividends | +10.8% | +35.9% |
| 10-Year ReturnCumulative with dividends | +230.2% | +459.3% |
| CAGR (3Y)Annualised 3-year return | +2.4% | +12.9% |
Risk & Volatility
Evenly matched — CP and CSX each lead in 1 of 2 comparable metrics.
Risk & Volatility
CP is the less volatile stock with a 0.70 beta — it tends to amplify market swings less than CSX's 0.77 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.70x | 0.77x |
| 52-Week HighHighest price in past year | $89.42 | $46.55 |
| 52-Week LowLowest price in past year | $68.42 | $28.13 |
| % of 52W HighCurrent price vs 52-week peak | +95.3% | +95.5% |
| RSI (14)Momentum oscillator 0–100 | 57.7 | 65.1 |
| Avg Volume (50D)Average daily shares traded | 2.7M | 12.1M |
Analyst Outlook
CSX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CP as "Buy" and CSX as "Buy". Consensus price targets imply 8.0% upside for CP (target: $92) vs -3.1% for CSX (target: $43). For income investors, CSX offers the higher dividend yield at 1.17% vs CP's 0.75%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $92.00 | $43.08 |
| # AnalystsCovering analysts | 43 | 46 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +1.2% |
| Dividend StreakConsecutive years of raises | 2 | 21 |
| Dividend / ShareAnnual DPS | $0.87 | $0.52 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.8% | +1.7% |
CSX leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). CP leads in 1 (Valuation Metrics). 2 tied.
CP vs CSX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CP or CSX a better buy right now?
For growth investors, Canadian Pacific Kansas City Ltd.
(CP) is the stronger pick with 3. 7% revenue growth year-over-year, versus -3. 1% for CSX Corporation (CSX). Canadian Pacific Kansas City Ltd. (CP) offers the better valuation at 25. 8x trailing P/E (22. 6x forward), making it the more compelling value choice. Analysts rate Canadian Pacific Kansas City Ltd. (CP) a "Buy" — based on 43 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.
02Which has the better valuation — CP or CSX?
On trailing P/E, Canadian Pacific Kansas City Ltd.
(CP) is the cheapest at 25. 8x versus CSX Corporation at 28. 9x. On forward P/E, Canadian Pacific Kansas City Ltd. is actually cheaper at 22. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: CSX Corporation wins at 4. 57x versus Canadian Pacific Kansas City Ltd. 's 4. 84x.
03Which is the better long-term investment — CP or CSX?
Over the past 5 years, CSX Corporation (CSX) delivered a total return of +35.
9%, compared to +10. 8% for Canadian Pacific Kansas City Ltd. (CP). Over 10 years, the gap is even starker: CSX returned +459. 3% versus CP's +230. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CP or CSX?
By beta (market sensitivity over 5 years), Canadian Pacific Kansas City Ltd.
(CP) is the lower-risk stock at 0. 70β versus CSX Corporation's 0. 77β — meaning CSX is approximately 9% more volatile than CP relative to the S&P 500. On balance sheet safety, Canadian Pacific Kansas City Ltd. (CP) carries a lower debt/equity ratio of 50% versus 147% for CSX Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — CP or CSX?
By revenue growth (latest reported year), Canadian Pacific Kansas City Ltd.
(CP) is pulling ahead at 3. 7% versus -3. 1% for CSX Corporation (CSX). On earnings-per-share growth, the picture is similar: Canadian Pacific Kansas City Ltd. grew EPS 13. 3% year-over-year, compared to -14. 0% for CSX Corporation. Over a 3-year CAGR, CP leads at 19. 6% 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.
06Which has better profit margins — CP or CSX?
Canadian Pacific Kansas City Ltd.
(CP) is the more profitable company, earning 27. 5% net margin versus 20. 5% for CSX Corporation — meaning it keeps 27. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CP leads at 37. 2% versus 32. 1% for CSX. At the gross margin level — before operating expenses — CP leads at 52. 2%, 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.
07Is CP or CSX more undervalued right now?
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, CSX Corporation (CSX) is the more undervalued stock at a PEG of 4. 57x versus Canadian Pacific Kansas City Ltd. 's 4. 84x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Canadian Pacific Kansas City Ltd. (CP) trades at 22. 6x forward P/E versus 23. 4x for CSX Corporation — 0. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CP: 8. 0% to $92. 00.
08Which pays a better dividend — CP or CSX?
All stocks in this comparison pay dividends.
CSX Corporation (CSX) offers the highest yield at 1. 2%, versus 0. 7% for Canadian Pacific Kansas City Ltd. (CP).
09Is CP or CSX better for a retirement portfolio?
For long-horizon retirement investors, CSX Corporation (CSX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
77), 1. 2% yield, +459. 3% 10Y return). Both have compounded well over 10 years (CSX: +459. 3%, CP: +230. 2%), 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.
10What are the main differences between CP and CSX?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
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.
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