WallStSmart

Cummins Inc (CMI)vsAlphabet Inc Class C (GOOG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 1096% more annual revenue ($402.84B vs $33.67B). GOOG leads profitability with a 32.8% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. GOOG earns a higher WallStSmart Score of 69/100 (B-).

CMI

Buy

61

out of 100

Grade: C+

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

GOOG

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 10.0Value: 10.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91
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
GOOGUndervalued (+44.6%)

Margin of Safety

+44.6%

Fair Value

$506.84

Current Price

$289.59

$217.25 discount

UndervaluedFair: $506.84Overvalued

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

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$3.50T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
31.6%10/10

Strong operational efficiency at 31.6%

Free Cash FlowQuality
$24.55B10/10

Generating 24.6B in free cash flow

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

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

GOOG3 concerns · Avg: 4.0/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

P/E RatioValuation
26.7x4/10

Moderate valuation

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

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 : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.

Bear Case : CMI

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

Bear Case : GOOG

The primary concerns for GOOG are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

CMI profiles as a value stock while GOOG is a growth play — different risk/reward profiles.

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

GOOG is growing revenue faster at 18.0% — sustainability is the question.

GOOG generates stronger free cash flow (24.6B), providing more financial flexibility.

Bottom Line

GOOG scores higher overall (69/100 vs 61/100), backed by strong 32.8% margins and 18.0% 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.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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