Cummins Inc (CMI)vsAdvanced Drainage Systems Inc (WMS)
CMI
Cummins Inc
$682.88
-4.59%
INDUSTRIALS · Cap: $90.90B
WMS
Advanced Drainage Systems Inc
$144.08
-3.12%
INDUSTRIALS · Cap: $11.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 1026% more annual revenue ($33.67B vs $2.99B). WMS leads profitability with a 15.8% profit margin vs 8.4%. WMS appears more attractively valued with a PEG of 1.21. WMS earns a higher WallStSmart Score of 66/100 (B-).
CMI
Buy59
out of 100
Grade: C
WMS
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$373.25
Current Price
$682.88
$309.63 premium
Margin of Safety
-67.6%
Fair Value
$103.37
Current Price
$144.08
$40.71 premium
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
Every $100 of equity generates 28 in profit
Strong operational efficiency at 21.0%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
0.4% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : WMS
The strongest argument for WMS centers on Return on Equity, Operating Margin. Profitability is solid with margins at 15.8% and operating margin at 21.0%. PEG of 1.21 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 : WMS
The primary concerns for WMS are Revenue Growth.
Key Dynamics to Monitor
WMS carries more volatility with a beta of 1.33 — expect wider price swings.
CMI is growing revenue faster at 1.1% — sustainability is the question.
WMS generates stronger free cash flow (184M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WMS scores higher overall (66/100 vs 59/100), backed by strong 15.8% margins. 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.
Advanced Drainage Systems Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Advanced Drainage Systems, Inc. designs, manufactures and markets thermoplastic corrugated pipe and related water management products and drainage solutions for use in the underground construction and infrastructure market in the United States, Canada, Mexico and internationally. The company is headquartered in Hilliard, Ohio.
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