WallStSmart

Cummins Inc (CMI)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 46% more annual revenue ($49.10B vs $33.67B). ZTO leads profitability with a 18.5% profit margin vs 8.4%. ZTO appears more attractively valued with a PEG of 1.29. ZTO 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

ZTO

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 8.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.74
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
ZTOUndervalued (+81.2%)

Margin of Safety

+81.2%

Fair Value

$132.23

Current Price

$25.37

$106.86 discount

UndervaluedFair: $132.23Overvalued

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

ZTO5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.97B10/10

Generating 12.0B in free cash flow

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

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

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : ZTO

The strongest argument for ZTO centers on Free Cash Flow, Debt/Equity, P/E Ratio. Profitability is solid with margins at 18.5% and operating margin at 22.3%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : CMI

The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

CMI profiles as a value stock while ZTO is a mature play — different risk/reward profiles.

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

ZTO is growing revenue faster at 12.3% — sustainability is the question.

ZTO generates stronger free cash flow (12.0B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (69/100 vs 59/100), backed by strong 18.5% margins and 12.3% 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.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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