Railway stocks have always acted as solid hedges against inflation. Therefore, it does not come as a surprise that Canadian National Railway (CNI) (TSE:CNR) and Canadian Pacific (CP) (TSE:CP) are turning out to be solid picks amid the inflationary pressures in Canada.
Over the past five years, Canadian Pacific has outperformed Canadian National Railway with gains of 134%, including dividends. CNR shareholders, on the other hand, have only enjoyed gains of about 50%, including dividends. Will CP stock continue to outperform CNR? In the video, we look at how the two rail stocks fair against each other fundamentally and which one is likely to outperform in the long term.