Cummins Inc (CMI)vsStanley Black & Decker Inc (SWK)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
SWK
Stanley Black & Decker Inc
$75.89
-3.12%
INDUSTRIALS · Cap: $11.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 123% more annual revenue ($33.67B vs $15.13B). CMI leads profitability with a 8.4% profit margin vs 2.7%. SWK appears more attractively valued with a PEG of 1.39. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
SWK
Buy52
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
+34.1%
Fair Value
$137.37
Current Price
$75.89
$61.48 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
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Premium valuation, high expectations priced in
ROE of 4.5% — below average capital efficiency
2.7% margin — thin
Revenue declined 1.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : SWK
The strongest argument for SWK centers on Price/Book. PEG of 1.39 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 : SWK
The primary concerns for SWK are P/E Ratio, Return on Equity, Profit Margin. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
SWK carries more volatility with a beta of 1.20 — 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 52/100). SWK offers better value entry with a 34.1% 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.
Stanley Black & Decker Inc
INDUSTRIALS · TOOLS & ACCESSORIES · USA
Stanley Black & Decker, Inc., formerly known as The Stanley Works, is a Fortune 500 American manufacturer of industrial tools and household hardware and provider of security products. Headquartered in the greater Hartford city of New Britain, Connecticut, Stanley Black & Decker is the result of the merger of Stanley Works and Black & Decker on March 12, 2010.
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