Cummins Inc (CMI)vsWatts Water Technologies Inc (WTS)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
WTS
Watts Water Technologies Inc
$297.79
-0.22%
INDUSTRIALS · Cap: $9.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 1281% more annual revenue ($33.67B vs $2.44B). WTS leads profitability with a 14.0% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. CMI earns a higher WallStSmart Score of 61/100 (C+).
CMI
Buy61
out of 100
Grade: C+
WTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
+31.9%
Fair Value
$462.26
Current Price
$297.79
$164.47 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
15.7% revenue growth
Earnings expanding 23.8% YoY
Areas to Watch
Moderate valuation
1.1% revenue growth
Moderate valuation
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : WTS
The strongest argument for WTS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 15.7% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : WTS
The primary concerns for WTS are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
CMI profiles as a value stock while WTS is a growth play — different risk/reward profiles.
WTS carries more volatility with a beta of 1.23 — expect wider price swings.
WTS is growing revenue faster at 15.7% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
CMI scores higher overall (61/100 vs 58/100). WTS offers better value entry with a 31.9% 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.
Watts Water Technologies Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Watts Water Technologies, Inc. designs, manufactures and sells products and systems that manage and conserve the flow of fluids and energy to, through and from buildings in the commercial and residential markets of the Americas, Europe, Asia-Pacific, the Middle East and Africa. . The company is headquartered in North Andover, Massachusetts.
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