Cummins Inc (CMI)vsGates Industrial Corporation plc (GTES)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
GTES
Gates Industrial Corporation plc
$23.64
+3.01%
INDUSTRIALS · Cap: $5.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 878% more annual revenue ($33.67B vs $3.44B). CMI leads profitability with a 8.4% profit margin vs 7.3%. GTES trades at a lower P/E of 23.7x. CMI earns a higher WallStSmart Score of 61/100 (C+).
CMI
Buy61
out of 100
Grade: C+
GTES
Buy58
out of 100
Grade: C
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
+41.6%
Fair Value
$45.40
Current Price
$23.64
$21.76 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
Reasonable price relative to book value
Earnings expanding 36.4% YoY
Areas to Watch
Moderate valuation
1.1% revenue growth
3.2% revenue growth
Grey zone — moderate risk
ROE of 7.9% — below average capital efficiency
7.3% margin — thin
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 : GTES
The strongest argument for GTES centers on Price/Book, EPS Growth.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : GTES
The primary concerns for GTES are Revenue Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
GTES carries more volatility with a beta of 1.23 — expect wider price swings.
GTES is growing revenue faster at 3.2% — 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 58/100). GTES offers better value entry with a 41.6% margin of safety. Both earn "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.
Gates Industrial Corporation plc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company is headquartered in Denver, Colorado.
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