Cummins Inc (CMI)vsEaton Corporation PLC (ETN)
CMI
Cummins Inc
$656.73
-0.11%
INDUSTRIALS · Cap: $90.90B
ETN
Eaton Corporation PLC
$422.44
-0.73%
INDUSTRIALS · Cap: $165.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 23% more annual revenue ($33.67B vs $27.45B). ETN leads profitability with a 14.9% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.80. ETN earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
ETN
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.1%
Fair Value
$371.78
Current Price
$656.73
$284.95 premium
Intrinsic value data unavailable for ETN.
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
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Strong operational efficiency at 20.0%
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Trading at 8.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : ETN
The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : ETN
The primary concerns for ETN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 40.6x leaves little room for execution misses.
Key Dynamics to Monitor
ETN carries more volatility with a beta of 1.16 — expect wider price swings.
ETN is growing revenue faster at 13.1% — sustainability is the question.
ETN generates stronger free cash flow (1.8B), 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.
Eaton Corporation PLC
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
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