Cummins Inc (CMI)vsFreightcar America Inc (RAIL)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
RAIL
Freightcar America Inc
$8.24
+1.35%
INDUSTRIALS · Cap: $163.89M
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 6621% more annual revenue ($33.67B vs $500.99M). CMI leads profitability with a 8.4% profit margin vs 7.6%. RAIL appears more attractively valued with a PEG of 0.64. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
RAIL
Buy53
out of 100
Grade: C-
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
+80.0%
Fair Value
$64.35
Current Price
$8.24
$56.11 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
Attractively priced relative to earnings
Earnings expanding 207.9% YoY
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Smaller company, higher risk/reward
7.6% margin — thin
ROE of -8.8% — below average capital efficiency
Revenue declined 8.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : RAIL
The strongest argument for RAIL centers on P/E Ratio, EPS Growth, PEG Ratio. PEG of 0.64 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 : RAIL
The primary concerns for RAIL are Market Cap, Profit Margin, Return on Equity.
Key Dynamics to Monitor
RAIL carries more volatility with a beta of 1.71 — 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.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CMI scores higher overall (59/100 vs 53/100). RAIL offers better value entry with a 80.0% 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.
Freightcar America Inc
INDUSTRIALS · RAILROADS · USA
FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.
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