Cummins Inc (CMI)vsGranite Construction Incorporated (GVA)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
GVA
Granite Construction Incorporated
$122.55
-1.79%
INDUSTRIALS · Cap: $5.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 661% more annual revenue ($33.67B vs $4.42B). CMI leads profitability with a 8.4% profit margin vs 4.4%. CMI appears more attractively valued with a PEG of 1.76. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
GVA
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.7%
Fair Value
$370.38
Current Price
$671.01
$300.63 premium
Margin of Safety
-31.7%
Fair Value
$101.15
Current Price
$122.55
$21.40 premium
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
19.2% revenue growth
Earnings expanding 25.1% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.4% margin — thin
Operating margin of 3.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : GVA
The strongest argument for GVA centers on Revenue Growth, EPS Growth. Revenue growth of 19.2% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : GVA
The primary concerns for GVA are PEG Ratio, P/E Ratio, Profit Margin. Thin 4.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI profiles as a value stock while GVA is a growth play — different risk/reward profiles.
GVA carries more volatility with a beta of 1.31 — expect wider price swings.
GVA is growing revenue faster at 19.2% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
CMI scores higher overall (59/100 vs 58/100). 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.
Granite Construction Incorporated
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Granite Construction Incorporated is an infrastructure contractor and producer of building materials in the United States. The company is headquartered in Watsonville, California.
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