WallStSmart

Cummins Inc (CMI)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 1835% more annual revenue ($33.67B vs $1.74B). ZWS leads profitability with a 12.3% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.76. ZWS earns a higher WallStSmart Score of 59/100 (C).

CMI

Buy

59

out of 100

Grade: C

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

ZWS

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 4.0Quality: 6.8
Piotroski: 5/9Altman Z: 1.53
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
ZWSFair Value (-0.2%)

Margin of Safety

-0.2%

Fair Value

$51.43

Current Price

$51.96

$0.53 premium

UndervaluedFair: $51.43Overvalued

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

ZWS1 strengths · Avg: 8.0/10
EPS GrowthGrowth
37.2%8/10

Earnings expanding 37.2% YoY

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

ZWS3 concerns · Avg: 3.3/10
PEG RatioValuation
1.794/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

P/E RatioValuation
41.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : ZWS

The strongest argument for ZWS centers on EPS Growth. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : CMI

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

Bear Case : ZWS

The primary concerns for ZWS are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 41.4x leaves little room for execution misses.

Key Dynamics to Monitor

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

ZWS is growing revenue faster at 11.4% — sustainability is the question.

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

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CMI scores higher overall (59/100 vs 59/100). 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.

Zurn Elkay Water Solutions Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Zurn Water Solutions Corporation designs, acquires, manufactures, and markets water system solutions that provide and improve water quality, safety, flow control, and conservation in and around non-residential buildings. The company is headquartered in Milwaukee, Wisconsin.

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