WallStSmart

Cummins Inc (CMI)vsPower Solutions International, Inc. Common Stock (PSIX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 4561% more annual revenue ($33.67B vs $722.40M). PSIX leads profitability with a 15.8% profit margin vs 8.4%. PSIX trades at a lower P/E of 12.0x. CMI earns a higher WallStSmart Score of 61/100 (C+).

CMI

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

PSIX

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 8.5Value: 5.7Quality: 8.5
Piotroski: 5/9Altman Z: 3.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMIUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$960.80

Current Price

$553.36

$407.44 discount

UndervaluedFair: $960.80Overvalued
PSIXSignificantly Overvalued (-155.6%)

Margin of Safety

-155.6%

Fair Value

$33.59

Current Price

$64.94

$31.35 premium

UndervaluedFair: $33.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.65B9/10

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

PSIX4 strengths · Avg: 10.0/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
93.5%10/10

Every $100 of equity generates 94 in profit

Revenue GrowthGrowth
32.5%10/10

Revenue surging 32.5% year-over-year

Altman Z-ScoreHealth
3.1610/10

Safe zone — low bankruptcy risk

Areas to Watch

CMI2 concerns · Avg: 4.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

PSIX4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Market CapQuality
$1.36B3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-31.6%2/10

Earnings declined 31.6%

Free Cash FlowQuality
$-7.63M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : PSIX

The strongest argument for PSIX centers on P/E Ratio, Return on Equity, Revenue Growth. Profitability is solid with margins at 15.8% and operating margin at 12.7%. Revenue growth of 32.5% demonstrates continued momentum.

Bear Case : CMI

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

Bear Case : PSIX

The primary concerns for PSIX are Price/Book, Market Cap, EPS Growth.

Key Dynamics to Monitor

CMI profiles as a value stock while PSIX is a growth play — different risk/reward profiles.

PSIX carries more volatility with a beta of 2.08 — expect wider price swings.

PSIX is growing revenue faster at 32.5% — sustainability is the question.

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

Bottom Line

CMI scores higher overall (61/100 vs 53/100). 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.

Power Solutions International, Inc. Common Stock

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Power Solutions International, Inc. designs, engineers, manufactures, markets, and sells engines and power systems in the United States, North America, the Pacific Rim, Europe, and internationally.

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