Cummins Inc (CMI)vsMcKesson Corporation (MCK)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1082% more annual revenue ($397.96B vs $33.67B). CMI leads profitability with a 8.4% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. CMI earns a higher WallStSmart Score of 61/100 (C+).
CMI
Buy61
out of 100
Grade: C+
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
+41.2%
Fair Value
$1622.09
Current Price
$879.75
$742.34 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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Areas to Watch
Moderate valuation
1.1% revenue growth
Moderate valuation
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, EPS Growth. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Profit Margin. Thin 1.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CMI scores higher overall (61/100 vs 57/100). MCK offers better value entry with a 41.2% 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.
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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