WallStSmart

Cummins Inc (CMI)vsGenerac Holdings Inc (GNRC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 700% more annual revenue ($33.67B vs $4.21B). CMI leads profitability with a 8.4% profit margin vs 3.8%. GNRC appears more attractively valued with a PEG of 0.96. 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

GNRC

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 4.0Value: 4.7Quality: 7.5
Piotroski: 3/9Altman Z: 2.49
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
GNRCSignificantly Overvalued (-1071.0%)

Margin of Safety

-1071.0%

Fair Value

$18.36

Current Price

$205.16

$186.80 premium

UndervaluedFair: $18.36Overvalued

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

GNRC1 strengths · Avg: 8.0/10
PEG RatioValuation
0.968/10

Growing faster than its price suggests

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

GNRC4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
77.5x2/10

Premium valuation, high expectations priced in

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 : GNRC

The strongest argument for GNRC centers on PEG Ratio. PEG of 0.96 suggests the stock is reasonably priced for its growth.

Bear Case : CMI

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

Bear Case : GNRC

The primary concerns for GNRC are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 77.5x leaves little room for execution misses. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

GNRC carries more volatility with a beta of 1.77 — expect wider price swings.

CMI is growing revenue faster at 1.1% — 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 42/100). 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.

Generac Holdings Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Generac Holdings Inc., commonly referred to as Generac, is a Fortune 1000 American manufacturer of backup power generation products for residential, light commercial and industrial markets.

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