WallStSmart

Cummins Inc (CMI)vsNL Industries Inc (NL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 21172% more annual revenue ($33.67B vs $158.28M). CMI leads profitability with a 8.4% profit margin vs -23.9%. CMI earns a higher WallStSmart Score of 59/100 (C).

CMI

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

NL

Hold

36

out of 100

Grade: F

Growth: 2.0Profit: 4.5Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-61.7%)

Margin of Safety

-61.7%

Fair Value

$370.38

Current Price

$671.01

$300.63 premium

UndervaluedFair: $370.38Overvalued
NLUndervalued (+19.1%)

Margin of Safety

+19.1%

Fair Value

$7.94

Current Price

$6.00

$1.94 discount

UndervaluedFair: $7.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$88.34B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
41.4%8/10

Earnings expanding 41.4% YoY

NL2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

NL4 concerns · Avg: 2.3/10
Market CapQuality
$285.85M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.9%2/10

ROE of -8.9% — below average capital efficiency

Revenue GrowthGrowth
-1.9%2/10

Revenue declined 1.9%

EPS GrowthGrowth
-95.5%2/10

Earnings declined 95.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.

Bull Case : NL

The strongest argument for NL centers on Price/Book, Operating Margin.

Bear Case : CMI

The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : NL

The primary concerns for NL are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

CMI profiles as a value stock while NL is a turnaround play — different risk/reward profiles.

CMI carries more volatility with a beta of 1.14 — expect wider price swings.

CMI is growing revenue faster at 1.1% — sustainability is the question.

CMI generates stronger free cash flow (990M), providing more financial flexibility.

Bottom Line

CMI scores higher overall (59/100 vs 36/100). NL offers better value entry with a 19.1% 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.

NL Industries Inc

INDUSTRIALS · SECURITY & PROTECTION SERVICES · USA

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally. The company is headquartered in Dallas, Texas.

Want to dig deeper into these stocks?