Cummins Inc (CMI)vsFranco-Nevada Corporation (FNV)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
FNV
Franco-Nevada Corporation
$233.67
+1.28%
BASIC MATERIALS · Cap: $44.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 1766% more annual revenue ($33.67B vs $1.80B). FNV leads profitability with a 61.6% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. FNV earns a higher WallStSmart Score of 68/100 (B-).
CMI
Buy61
out of 100
Grade: C+
FNV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
+6.0%
Fair Value
$274.25
Current Price
$233.67
$40.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Earnings expanding 41.4% YoY
Keeps 62 of every $100 in revenue as profit
Strong operational efficiency at 76.1%
Revenue surging 85.8% year-over-year
Earnings expanding 108.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
1.1% revenue growth
Premium valuation, high expectations priced in
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : FNV
The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 61.6% and operating margin at 76.1%. Revenue growth of 85.8% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : FNV
The primary concerns for FNV are P/E Ratio, PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
CMI profiles as a value stock while FNV is a growth play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
FNV is growing revenue faster at 85.8% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
FNV scores higher overall (68/100 vs 61/100), backed by strong 61.6% margins and 85.8% revenue growth. CMI offers better value entry with a 37.7% margin of safety. Both earn "Strong 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.
Franco-Nevada Corporation
BASIC MATERIALS · GOLD · USA
Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.
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