WallStSmart

ATS Corporation (ATS)vsCummins Inc (CMI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 1110% more annual revenue ($33.89B vs $2.80B). CMI leads profitability with a 7.9% profit margin vs 0.7%. CMI trades at a lower P/E of 35.5x. ATS earns a higher WallStSmart Score of 51/100 (C-).

ATS

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 4.5Value: 5.7Quality: 5.0
Piotroski: 2/9Altman Z: 1.31

CMI

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATSUndervalued (+34.9%)

Margin of Safety

+34.9%

Fair Value

$47.28

Current Price

$35.38

$11.90 discount

UndervaluedFair: $47.28Overvalued
CMISignificantly Overvalued (-59.1%)

Margin of Safety

-59.1%

Fair Value

$376.46

Current Price

$679.55

$303.09 premium

UndervaluedFair: $376.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATS3 strengths · Avg: 8.7/10
EPS GrowthGrowth
358.0%10/10

Earnings expanding 358.0% YoY

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

CMI2 strengths · Avg: 9.0/10
Market CapQuality
$94.23B9/10

Large-cap with strong market position

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

ATS4 concerns · Avg: 2.8/10
Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
247.4x2/10

Premium valuation, high expectations priced in

CMI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ATS

The strongest argument for ATS centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : CMI

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

Bear Case : ATS

The primary concerns for ATS are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 247.4x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Bear Case : CMI

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

Key Dynamics to Monitor

ATS profiles as a growth stock while CMI is a value play — different risk/reward profiles.

ATS carries more volatility with a beta of 1.27 — expect wider price swings.

ATS is growing revenue faster at 16.7% — sustainability is the question.

CMI generates stronger free cash flow (120M), providing more financial flexibility.

Bottom Line

ATS scores higher overall (51/100 vs 47/100) and 16.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ATS Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

ATS Corporation is a premier provider of automated manufacturing solutions, adept in systems integration and cutting-edge automation technologies. Catering to diverse sectors such as automotive, medical devices, and electronics, ATS designs and implements bespoke manufacturing equipment that enhances productivity and operational efficiency. With a robust global footprint and a strong commitment to innovation and sustainability, the company is positioned to address the dynamic needs of its clients while seizing growth opportunities in the booming automation market. This strategic focus on advanced manufacturing positions ATS as a compelling investment for institutional investors seeking exposure to the rapidly evolving automation landscape.

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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.

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