Cummins Inc (CMI)vsTrex Company Inc (TREX)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
TREX
Trex Company Inc
$39.63
-3.37%
INDUSTRIALS · Cap: $4.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 2767% more annual revenue ($33.67B vs $1.17B). TREX leads profitability with a 16.2% profit margin vs 8.4%. TREX appears more attractively valued with a PEG of 1.00. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
TREX
Buy51
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
+56.5%
Fair Value
$101.25
Current Price
$39.63
$61.62 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
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Operating margin of 2.2%
Weak financial health signals
Revenue declined 3.9%
Earnings declined 89.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : TREX
The strongest argument for TREX centers on Altman Z-Score, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at 2.2%. PEG of 1.00 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 : TREX
The primary concerns for TREX are Operating Margin, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
CMI profiles as a value stock while TREX is a declining play — different risk/reward profiles.
TREX carries more volatility with a beta of 1.61 — 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 51/100). TREX offers better value entry with a 56.5% 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.
Trex Company Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Trex Company, Inc. manufactures and distributes wood-plastic composite products and related accessories primarily for residential deck and railing applications in the United States. The company is headquartered in Winchester, Virginia.
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