WallStSmart

Cummins Inc (CMI)vsDonaldson Company Inc (DCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 793% more annual revenue ($34.71B vs $3.89B). DCI leads profitability with a 11.7% profit margin vs 7.8%. CMI appears more attractively valued with a PEG of 1.11. DCI earns a higher WallStSmart Score of 62/100 (C+).

CMI

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 5.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.99

DCI

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 4.0Quality: 5.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CMI.

DCISignificantly Overvalued (-68.1%)

Margin of Safety

-68.1%

Fair Value

$65.77

Current Price

$89.25

$23.48 premium

UndervaluedFair: $65.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.64B9/10

Large-cap with strong market position

Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

Free Cash FlowQuality
$1.25B8/10

Generating 1.3B in free cash flow

DCI1 strengths · Avg: 9.0/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Areas to Watch

CMI3 concerns · Avg: 3.7/10
P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
4.7%4/10

4.7% earnings growth

Profit MarginProfitability
7.8%3/10

7.8% margin — thin

DCI2 concerns · Avg: 3.5/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, Free Cash Flow. PEG of 1.11 suggests the stock is reasonably priced for its growth.

Bull Case : DCI

The strongest argument for DCI centers on Return on Equity.

Bear Case : CMI

The primary concerns for CMI are P/E Ratio, EPS Growth, Profit Margin.

Bear Case : DCI

The primary concerns for DCI are PEG Ratio, Piotroski F-Score.

Key Dynamics to Monitor

CMI carries more volatility with a beta of 1.23 — expect wider price swings.

CMI is growing revenue faster at 9.4% — sustainability is the question.

CMI generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DCI scores higher overall (62/100 vs 55/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cummins Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Cummins is a Columbus, Indiana based multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. Cummins also services engines and related equipment, including fuel systems, controls, air handling, filtration, emission control, electrical power generation systems, and trucks.

Donaldson Company Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company is headquartered in Bloomington, Minnesota.

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