WallStSmart

Cummins Inc (CMI)vsFomento Economico Mexicano (FMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fomento Economico Mexicano generates 2416% more annual revenue ($852.92B vs $33.89B). CMI leads profitability with a 7.9% profit margin vs 3.3%. CMI appears more attractively valued with a PEG of 1.85. FMX earns a higher WallStSmart Score of 54/100 (C-).

CMI

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

FMX

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-58.4%)

Margin of Safety

-58.4%

Fair Value

$378.02

Current Price

$679.55

$301.53 premium

UndervaluedFair: $378.02Overvalued

Intrinsic value data unavailable for FMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI2 strengths · Avg: 9.0/10
Market CapQuality
$94.23B9/10

Large-cap with strong market position

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

FMX2 strengths · Avg: 9.0/10
EPS GrowthGrowth
167.8%10/10

Earnings expanding 167.8% YoY

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

CMI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

FMX4 concerns · Avg: 3.0/10
P/E RatioValuation
26.2x4/10

Moderate valuation

Profit MarginProfitability
3.3%3/10

3.3% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.942/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity.

Bull Case : FMX

The strongest argument for FMX centers on EPS Growth, Price/Book.

Bear Case : CMI

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

Bear Case : FMX

The primary concerns for FMX are P/E Ratio, Profit Margin, Piotroski F-Score. Thin 3.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

CMI carries more volatility with a beta of 1.27 — expect wider price swings.

FMX is growing revenue faster at 6.3% — sustainability is the question.

FMX generates stronger free cash flow (842M), providing more financial flexibility.

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

Bottom Line

FMX scores higher overall (54/100 vs 47/100). Both earn "Buy" and "Hold" 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.

Fomento Economico Mexicano

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Fomento Econmico Mexicano, SAB de CV, is a bottler of Coca-Cola brand beverages. The company is headquartered in Monterrey, Mexico.

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