Cummins Inc (CMI)vsSouthwest Airlines Company (LUV)
CMI
Cummins Inc
$660.75
+0.58%
INDUSTRIALS · Cap: $91.35B
LUV
Southwest Airlines Company
$39.45
+4.50%
INDUSTRIALS · Cap: $19.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 17% more annual revenue ($33.67B vs $28.88B). CMI leads profitability with a 8.4% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.21. LUV earns a higher WallStSmart Score of 68/100 (B-).
CMI
Buy59
out of 100
Grade: C
LUV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.4%
Fair Value
$368.86
Current Price
$660.75
$291.89 premium
Margin of Safety
+64.5%
Fair Value
$144.78
Current Price
$39.45
$105.33 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
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Moderate valuation
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.21 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 : LUV
The primary concerns for LUV are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
LUV carries more volatility with a beta of 1.18 — expect wider price swings.
LUV is growing revenue faster at 12.8% — 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
LUV scores higher overall (68/100 vs 59/100) and 12.8% revenue growth. 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.
Southwest Airlines Company
INDUSTRIALS · AIRLINES · USA
Southwest Airlines Co., typically referred to as Southwest, is one of the major airlines of the United States and the world's largest low-cost carrier airline. It is headquartered in Dallas, Texas.
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