WallStSmart

Cummins Inc (CMI)vsRentokil Initial PLC (RTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 391% more annual revenue ($33.89B vs $6.91B). CMI leads profitability with a 7.9% profit margin vs 6.8%. RTO appears more attractively valued with a PEG of 0.99. RTO earns a higher WallStSmart Score of 57/100 (C).

CMI

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

RTO

Buy

57

out of 100

Grade: C

Growth: 8.7Profit: 5.0Value: 4.7Quality: 5.5
Piotroski: 5/9Altman Z: 2.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-59.1%)

Margin of Safety

-59.1%

Fair Value

$376.46

Current Price

$679.55

$303.09 premium

UndervaluedFair: $376.46Overvalued
RTOOvervalued (-6.2%)

Margin of Safety

-6.2%

Fair Value

$30.60

Current Price

$33.65

$3.05 premium

UndervaluedFair: $30.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI2 strengths · Avg: 9.0/10
Market CapQuality
$94.23B9/10

Large-cap with strong market position

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

RTO2 strengths · Avg: 9.0/10
EPS GrowthGrowth
95.2%10/10

Earnings expanding 95.2% YoY

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Areas to Watch

CMI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

RTO4 concerns · Avg: 2.8/10
Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Debt/EquityHealth
1.123/10

Elevated debt levels

P/E RatioValuation
59.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : RTO

The strongest argument for RTO centers on EPS Growth, PEG Ratio. PEG of 0.99 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 : RTO

The primary concerns for RTO are Return on Equity, Profit Margin, Debt/Equity. A P/E of 59.0x leaves little room for execution misses.

Key Dynamics to Monitor

CMI carries more volatility with a beta of 1.27 — expect wider price swings.

RTO is growing revenue faster at 5.8% — sustainability is the question.

RTO generates stronger free cash flow (401M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RTO scores higher overall (57/100 vs 47/100). 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.

Rentokil Initial PLC

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Rentokil Initial plc offers route-based services in North America, the UK, the rest of Europe, Asia, the Pacific and internationally. The company is headquartered in Crawley, the United Kingdom.

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