Cummins Inc (CMI)vsGraco Inc (GGG)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
GGG
Graco Inc
$86.04
+0.61%
INDUSTRIALS · Cap: $14.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 1405% more annual revenue ($33.67B vs $2.24B). GGG leads profitability with a 23.3% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. GGG earns a higher WallStSmart Score of 63/100 (C+).
CMI
Buy61
out of 100
Grade: C+
GGG
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
+31.6%
Fair Value
$138.23
Current Price
$86.04
$52.19 discount
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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 23 of every $100 in revenue as profit
Strong operational efficiency at 27.5%
Earnings expanding 23.8% YoY
Areas to Watch
Moderate valuation
1.1% revenue growth
Moderate valuation
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : GGG
The strongest argument for GGG centers on Debt/Equity, Altman Z-Score, Profit Margin. Profitability is solid with margins at 23.3% and operating margin at 27.5%.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : GGG
The primary concerns for GGG are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
CMI profiles as a value stock while GGG is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
GGG is growing revenue faster at 8.1% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
GGG scores higher overall (63/100 vs 61/100), backed by strong 23.3% margins. 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.
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.
Graco Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Graco Inc. designs, manufactures and markets systems and equipment used to move, measure, control, dispense and spray fluids and powders worldwide. The company is headquartered in Minneapolis, Minnesota.
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