WallStSmart

Cummins Inc (CMI)vsTextron Inc (TXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 128% more annual revenue ($33.67B vs $14.80B). CMI leads profitability with a 8.4% profit margin vs 6.2%. TXT appears more attractively valued with a PEG of 1.12. TXT earns a higher WallStSmart Score of 69/100 (B-).

CMI

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

TXT

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-61.7%)

Margin of Safety

-61.7%

Fair Value

$370.38

Current Price

$671.01

$300.63 premium

UndervaluedFair: $370.38Overvalued
TXTSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$82.71

Current Price

$89.78

$7.07 premium

UndervaluedFair: $82.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$88.34B9/10

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

TXT4 strengths · Avg: 8.5/10
EPS GrowthGrowth
74.4%10/10

Earnings expanding 74.4% YoY

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

TXT1 concerns · Avg: 3.0/10
Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : TXT

The strongest argument for TXT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 15.6% demonstrates continued momentum. PEG of 1.12 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 : TXT

The primary concerns for TXT are Profit Margin.

Key Dynamics to Monitor

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

CMI carries more volatility with a beta of 1.14 — expect wider price swings.

TXT is growing revenue faster at 15.6% — sustainability is the question.

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

Bottom Line

TXT scores higher overall (69/100 vs 59/100) and 15.6% revenue growth. Both earn "Strong 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.

Textron Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, Hawker, and Cessna brands), and Lycoming Engines.

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