Cummins Inc (CMI)vsEaton Corporation PLC (ETN)
CMI
Cummins Inc
$533.54
-1.24%
INDUSTRIALS · Cap: $75.30B
ETN
Eaton Corporation PLC
$356.80
-0.95%
INDUSTRIALS · Cap: $140.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 23% more annual revenue ($33.67B vs $27.45B). ETN leads profitability with a 14.9% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.48. ETN earns a higher WallStSmart Score of 61/100 (C+).
CMI
Buy61
out of 100
Grade: C+
ETN
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.5%
Fair Value
$958.93
Current Price
$533.54
$425.39 discount
Margin of Safety
-2.5%
Fair Value
$386.33
Current Price
$356.80
$29.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 110.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Earnings expanding 41.4% YoY
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Strong operational efficiency at 20.0%
Generating 1.8B in free cash flow
Areas to Watch
Moderate valuation
Premium valuation, high expectations priced in
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 110.0% demonstrates continued momentum. PEG of 1.48 suggests the stock is reasonably priced for its growth.
Bull Case : ETN
The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio.
Bear Case : ETN
The primary concerns for ETN are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
CMI profiles as a hypergrowth stock while ETN is a value play — different risk/reward profiles.
ETN carries more volatility with a beta of 1.17 — expect wider price swings.
CMI is growing revenue faster at 110.0% — sustainability is the question.
ETN generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
CMI scores higher overall (61/100 vs 61/100) and 110.0% revenue growth. 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.
Eaton Corporation PLC
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
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