We propose a simple and efficient local algorithm for graph isomorphism which succeeds for a large class of sparse graphs. This algorithm produces a low-depth canonical labeling, which is a labeling of the vertices of the graph that identifies its isomorphism class using vertices' local neighborhoods. Prior work by Czajka and Pandurangan showed that the degree profile of a vertex (i.e., the sorted list of the degrees of its neighbors) gives a canonical labeling with high probability when $n p_n = ω( \log^{4}(n) / \log \log n )$ (and $p_{n} \leq 1/2$); subsequently, Mossel and Ross showed that the same holds when $n p_n = ω( \log^{2}(n) )$. We first show that their analysis essentially cannot be improved: we prove that when $n p_n = o( \log^{2}(n) / (\log \log n)^{3} )$, with high probability there exist distinct vertices with isomorphic $2$-neighborhoods. Our first main result is a positive counterpart to this, showing that $3$-neighborhoods give a canonical labeling when $n p_n \geq (1+δ) \log n$ (and $p_n \leq 1/2$); this improves a recent result of Ding, Ma, Wu, and Xu, completing the picture above the connectivity threshold. Our second main result is a smoothed analysis of graph isomorphism, showing that for a large class of deterministic graphs, a small random perturbation ensures that $3$-neighborhoods give a canonical labeling with high probability. While the worst-case complexity of graph isomorphism is still unknown, this shows that graph isomorphism has polynomial smoothed complexity.