Smith AO Corporation (AOS)vsCummins Inc (CMI)
AOS
Smith AO Corporation
$66.90
+2.22%
INDUSTRIALS · Cap: $9.25B
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 779% more annual revenue ($33.67B vs $3.83B). AOS leads profitability with a 14.3% profit margin vs 8.4%. AOS appears more attractively valued with a PEG of 1.36. AOS earns a higher WallStSmart Score of 63/100 (C+).
AOS
Buy63
out of 100
Grade: C+
CMI
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.2%
Fair Value
$143.84
Current Price
$66.90
$76.94 discount
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 29 in profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Earnings expanding 41.4% YoY
Areas to Watch
0.0% revenue growth
Moderate valuation
1.1% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : AOS
The strongest argument for AOS centers on Return on Equity, Debt/Equity, P/E Ratio. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bull 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.
Bear Case : AOS
The primary concerns for AOS are Revenue Growth.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
AOS carries more volatility with a beta of 1.30 — expect wider price swings.
CMI is growing revenue faster at 1.1% — 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
AOS scores higher overall (63/100 vs 61/100). CMI offers better value entry with a 37.7% 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.
Smith AO Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
Visit Website →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.
Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?