Cummins Inc (CMI)vsLegalZoom.com Inc (LZ)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
LZ
LegalZoom.com Inc
$6.45
-0.31%
INDUSTRIALS · Cap: $1.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 4353% more annual revenue ($33.67B vs $756.04M). CMI leads profitability with a 8.4% profit margin vs 2.0%. CMI trades at a lower P/E of 31.1x. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
LZ
Hold39
out of 100
Grade: F
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
+42.9%
Fair Value
$12.45
Current Price
$6.45
$6.00 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
17.7% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Smaller company, higher risk/reward
2.0% margin — thin
Premium valuation, high expectations priced in
Earnings declined 57.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : LZ
The strongest argument for LZ centers on Revenue Growth. Revenue growth of 17.7% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : LZ
The primary concerns for LZ are Market Cap, Profit Margin, P/E Ratio. A P/E of 80.9x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI profiles as a value stock while LZ is a growth play — different risk/reward profiles.
LZ carries more volatility with a beta of 1.30 — expect wider price swings.
LZ is growing revenue faster at 17.7% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
CMI scores higher overall (59/100 vs 39/100). LZ offers better value entry with a 42.9% margin of safety. Both earn "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.
LegalZoom.com Inc
INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA
LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.
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