Cummins Inc (CMI)vsMcGrath RentCorp (MGRC)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
MGRC
McGrath RentCorp
$109.38
-1.06%
INDUSTRIALS · Cap: $2.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 3466% more annual revenue ($33.67B vs $944.24M). MGRC leads profitability with a 16.6% profit margin vs 8.4%. MGRC appears more attractively valued with a PEG of 1.18. MGRC earns a higher WallStSmart Score of 69/100 (B-).
CMI
Buy59
out of 100
Grade: C
MGRC
Strong Buy69
out of 100
Grade: B-
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
-26.4%
Fair Value
$91.46
Current Price
$109.38
$17.92 premium
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
Reasonable price relative to book value
Strong operational efficiency at 28.9%
Earnings expanding 28.1% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : MGRC
The strongest argument for MGRC centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 16.6% and operating margin at 28.9%. PEG of 1.18 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 : MGRC
No major red flags identified for MGRC, but monitor valuation.
Key Dynamics to Monitor
CMI profiles as a value stock while MGRC is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.14 — expect wider price swings.
MGRC is growing revenue faster at 5.3% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
MGRC scores higher overall (69/100 vs 59/100), backed by strong 16.6% margins. 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.
McGrath RentCorp
INDUSTRIALS · RENTAL & LEASING SERVICES · USA
McGrath RentCorp is a business-to-business rental company in the United States and internationally. The company is headquartered in Livermore, California.
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