Cummins Inc (CMI)vsGlaxoSmithKline PLC ADR (GSK)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
GSK
GlaxoSmithKline PLC ADR
$50.41
-0.18%
HEALTHCARE · Cap: $101.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 3% more annual revenue ($33.89B vs $32.78B). GSK leads profitability with a 17.8% profit margin vs 7.9%. GSK appears more attractively valued with a PEG of 0.50. GSK earns a higher WallStSmart Score of 66/100 (B-).
CMI
Hold47
out of 100
Grade: D+
GSK
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$376.46
Current Price
$679.55
$303.09 premium
Margin of Safety
-3.1%
Fair Value
$56.71
Current Price
$50.41
$6.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 36.3%
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
1.5% revenue growth
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : GSK
The strongest argument for GSK centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 36.3%. PEG of 0.50 suggests the stock is reasonably priced for its growth.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
CMI is growing revenue faster at 2.7% — sustainability is the question.
GSK generates stronger free cash flow (698M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GSK scores higher overall (66/100 vs 47/100), backed by strong 17.8% margins. Both earn "Strong 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.
GlaxoSmithKline PLC ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.
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