Cummins Inc (CMI)vsMcKesson Corporation (MCK)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1074% more annual revenue ($397.96B vs $33.89B). CMI leads profitability with a 7.9% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. MCK earns a higher WallStSmart Score of 62/100 (C+).
CMI
Hold47
out of 100
Grade: D+
MCK
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.4%
Fair Value
$378.02
Current Price
$679.55
$301.53 premium
Margin of Safety
+63.8%
Fair Value
$2633.99
Current Price
$736.09
$1897.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 3.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 11.4% demonstrates continued momentum. PEG of 0.90 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 : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCK scores higher overall (62/100 vs 47/100) and 11.4% revenue growth. 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.
McKesson Corporation
HEALTHCARE · MEDICAL DISTRIBUTION · USA
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools.
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