TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking total return performance.

BOSTON ( TheStreet) -- TheStreet.com's stock-rating model upgraded Canadian Pacific Railway ( CP) to "buy."

The numbers: Second-quarter revenue decreased 16% to $1 billion as net income inched up 2% to $157 million. Earnings per share fell 7% to 93 cents, hurt by a significantly higher share count. The operating margin climbed from 21% to 22% and the net margin jumped from 13% to 15%. A quick ratio of 0.6 indicates a weak liquidity position, but the cash balance has grown 313% to $157 million since the year-earlier quarter. And a debt-to-equity ratio of 0.7 demonstrates reasonable leverage.

The stock: Canadian Pacific has increased 33% in 2009, beating major U.S. indices. At a 2009 price-to-earnings ratio of 17, the stock is on par with the S&P 500 Index, but at a discount to its peer group.

The model upgraded transaction-processor MasterCard ( MA) to "buy."

The numbers: Second-quarter revenue increased 3% to $1.3 billion as the company swung to a profit of $349 million, or $2.67 per share, from a loss of $746 million, or $5.74 per share, in the year-earlier period, helped by improved pricing, more transactions processed, and fewer rebates and incentives. The operating margin increased from 33% to 44% and the net margin climbed from negative territory to 27%. MasterCard has an outstanding financial position, especially when considering its size. A quick ratio of 1.3 indicates strong liquidity and the balance sheet holds just $21 million of debt, reflecting minimal leverage.

The stock: MasterCard is up 36% in 2009, beating major U.S. indices. The stock trades at a 2009 price-to-earnings ratio of 18 and a 2010 P/E ratio of 15, but offers a dividend yield below 1%.

If you liked this article you might like

ADP Rejects Ackman Demands as It Performs Seven Times Better Than He Does

CSX Chief Harrison Blames Service Disruptions on Employee Resistance

Activists Forced CEOs to Leave These Huge Companies This Year

CSX: Cramer's Top Takeaways

Navigating Strong Crosscurrents: Cramer's 'Mad Money' Recap (Tuesday 6/13/17)