WallStSmart

Cummins Inc (CMI)vsFranklin Electric Co Inc (FELE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 1480% more annual revenue ($33.67B vs $2.13B). CMI leads profitability with a 8.4% profit margin vs 6.9%. CMI appears more attractively valued with a PEG of 1.47. CMI earns a higher WallStSmart Score of 61/100 (C+).

CMI

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

FELE

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 9.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMIUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$960.80

Current Price

$553.36

$407.44 discount

UndervaluedFair: $960.80Overvalued
FELEUndervalued (+15.7%)

Margin of Safety

+15.7%

Fair Value

$130.09

Current Price

$93.42

$36.67 discount

UndervaluedFair: $130.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.65B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
41.4%8/10

Earnings expanding 41.4% YoY

FELE1 strengths · Avg: 8.0/10
EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

Areas to Watch

CMI2 concerns · Avg: 4.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

FELE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
29.0x4/10

Moderate valuation

Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bull Case : FELE

The strongest argument for FELE centers on EPS Growth.

Bear Case : CMI

The primary concerns for CMI are P/E Ratio, Revenue Growth.

Bear Case : FELE

The primary concerns for FELE are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

CMI carries more volatility with a beta of 1.13 — expect wider price swings.

FELE is growing revenue faster at 4.3% — sustainability is the question.

CMI generates stronger free cash flow (990M), providing more financial flexibility.

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

Bottom Line

CMI scores higher overall (61/100 vs 57/100). FELE offers better value entry with a 15.7% margin of safety. 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.

Franklin Electric Co Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Franklin Electric Co., Inc. designs, manufactures and distributes fuel and water pumping systems worldwide. The company is headquartered in Fort Wayne, Indiana.

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