Cummins Inc (CMI)vsDiamondback Energy Inc (FANG)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
FANG
Diamondback Energy Inc
$188.70
-0.92%
ENERGY · Cap: $53.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 134% more annual revenue ($33.89B vs $14.47B). CMI leads profitability with a 7.9% profit margin vs 2.0%. CMI appears more attractively valued with a PEG of 1.85. CMI earns a higher WallStSmart Score of 47/100 (D+).
CMI
Hold47
out of 100
Grade: D+
FANG
Hold41
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$376.46
Current Price
$679.55
$303.09 premium
Margin of Safety
+44.7%
Fair Value
$305.77
Current Price
$188.70
$117.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Reasonable price relative to book value
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
ROE of 0.5% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : FANG
The strongest argument for FANG centers on Price/Book, Market Cap.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : FANG
The primary concerns for FANG are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 196.3x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
FANG is growing revenue faster at 9.1% — sustainability is the question.
FANG generates stronger free cash flow (895M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CMI scores higher overall (47/100 vs 41/100). FANG offers better value entry with a 44.7% margin of safety. Both earn "Hold" 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.
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.
Diamondback Energy Inc
ENERGY · OIL & GAS E&P · USA
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
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