CNI (Canadian National Railway Co) vs S&P 500 Comparison

CNI

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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CNI

S&P 500

Difference

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CNI

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

CNI

UNP

CSX

NSC

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Canadian National Railway Co
Glance View

Economic Moat

None

Market Cap

64.4B USD

Industry

Road & Rail

In the expansive landscape of North America's rail industry, Canadian National Railway Co., often known simply as CN, stands as a formidable force of connectivity and commerce. Founded in 1919, CN has grown beyond its Canadian roots, operating a network that stretches over 19,000 miles traversing Canada and parts of the United States from the Atlantic to the Pacific and down to the Gulf of Mexico. This extensive coverage enables CN to serve as a pivotal link in the transcontinental supply chain, efficiently moving a diverse array of commodities. From grains harvested in the Prairie provinces to oil sands products, lumber, and manufacturing goods, CN's railcars transport vital materials and products that fuel both the North American and global economies. Central to its business model, CN generates revenue by charging customers for freight transportation across its network. It operates as a differentiated service provider, offering customized rail solutions that compete with other forms of transportation like trucking and shipping. Customers value CN not only for its extensive and strategically positioned network but also for its reliability and efficiency in delivering goods. The company invests heavily in maintaining and upgrading its infrastructure and technology to ensure smooth operations and meet the evolving demands of the market. Besides freight revenue, CN also capitalizes on ancillary services, including warehousing, distribution, and intermodal services, where they integrate rail transport with trucks and container ships, thereby enhancing their value proposition in the logistics chain.

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CNI Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CNI

vs

S&P 500

Stocks Performance
CNI vs S&P 500

Performance Gap
CNI vs S&P 500

Performance By Year
CNI vs S&P 500

Competitors Performance
Canadian National Railway Co vs Peers

Canadian National Railway Co
Glance View

Company

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Tools

Stocks

US		Union Pacific Corp NYSE:UNP	Add
CA		Canadian Pacific Railway Ltd TSX:CP	Add
US		CSX Corp NASDAQ:CSX	Add
US		Norfolk Southern Corp NYSE:NSC	Add
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Add
US	K	Kansas City Southern LSE:0JQ4	Add
HK		MTR Corp Ltd HKEX:66	Add
JP		East Japan Railway Co TSE:9020	Add
JP		Central Japan Railway Co TSE:9022	Add
CN		Daqin Railway Co Ltd SSE:601006	Add

US		Union Pacific Corp NYSE:UNP	Select
CA		Canadian Pacific Railway Ltd TSX:CP	Select
US		CSX Corp NASDAQ:CSX	Select
US		Norfolk Southern Corp NYSE:NSC	Select
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Select
US	K	Kansas City Southern LSE:0JQ4	Select
HK		MTR Corp Ltd HKEX:66	Select
JP		East Japan Railway Co TSE:9020	Select
JP		Central Japan Railway Co TSE:9022	Select
CN		Daqin Railway Co Ltd SSE:601006	Select

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CNI vs S&P 500

Stocks Performance CNI vs S&P 500

Performance Gap CNI vs S&P 500

Performance By Year CNI vs S&P 500

Competitors Performance Canadian National Railway Co vs Peers

Canadian National Railway Co Glance View

Company

Help

Tools

Stocks

CNI

vs

S&P 500

Stocks Performance
CNI vs S&P 500

Performance Gap
CNI vs S&P 500

Performance By Year
CNI vs S&P 500

Competitors Performance
Canadian National Railway Co vs Peers

Canadian National Railway Co
Glance View