WallStSmart

Cummins Inc (CMI)vsGates Industrial Corporation plc (GTES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 890% more annual revenue ($34.71B vs $3.50B). GTES leads profitability with a 10.4% profit margin vs 7.8%. GTES trades at a lower P/E of 18.2x. GTES earns a higher WallStSmart Score of 64/100 (C+).

CMI

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 5.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.99

GTES

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 5.3Quality: 7.5
Piotroski: 6/9Altman Z: 1.96

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.64B9/10

Large-cap with strong market position

Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

Free Cash FlowQuality
$1.25B8/10

Generating 1.3B in free cash flow

GTES2 strengths · Avg: 9.0/10
EPS GrowthGrowth
205.8%10/10

Earnings expanding 205.8% YoY

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

CMI3 concerns · Avg: 3.7/10
P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
4.7%4/10

4.7% earnings growth

Profit MarginProfitability
7.8%3/10

7.8% margin — thin

GTES2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, Free Cash Flow. PEG of 1.11 suggests the stock is reasonably priced for its growth.

Bull Case : GTES

The strongest argument for GTES centers on EPS Growth, Price/Book.

Bear Case : CMI

The primary concerns for CMI are P/E Ratio, EPS Growth, Profit Margin.

Bear Case : GTES

The primary concerns for GTES are Altman Z-Score, Return on Equity.

Key Dynamics to Monitor

GTES carries more volatility with a beta of 1.26 — expect wider price swings.

CMI is growing revenue faster at 9.4% — sustainability is the question.

CMI generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GTES scores higher overall (64/100 vs 55/100). 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.

Gates Industrial Corporation plc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company is headquartered in Denver, Colorado.

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