Cummins Inc (CMI)vsHumana Inc (HUM)
CMI
Cummins Inc
$715.76
+6.06%
INDUSTRIALS · Cap: $90.90B
HUM
Humana Inc
$246.33
+2.84%
HEALTHCARE · Cap: $28.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Humana Inc generates 307% more annual revenue ($137.20B vs $33.67B). CMI leads profitability with a 8.4% profit margin vs 0.8%. HUM appears more attractively valued with a PEG of 1.33. HUM earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
HUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$373.25
Current Price
$715.76
$342.51 premium
Margin of Safety
+81.0%
Fair Value
$1141.73
Current Price
$246.33
$895.40 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
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 23.5% year-over-year
Generating 1.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.0x book value
1.1% revenue growth
ROE of 6.3% — below average capital efficiency
0.8% margin — thin
Operating margin of 4.7%
Earnings declined 4.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : HUM
The strongest argument for HUM centers on Altman Z-Score, Price/Book, Revenue Growth. Revenue growth of 23.5% demonstrates continued momentum. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : HUM
The primary concerns for HUM are Return on Equity, Profit Margin, Operating Margin. Thin 0.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI profiles as a value stock while HUM is a growth play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.14 — expect wider price swings.
HUM is growing revenue faster at 23.5% — sustainability is the question.
HUM generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
CMI scores higher overall (59/100 vs 59/100). HUM offers better value entry with a 81.0% 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.
Humana Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.
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