Cummins Inc (CMI)vsHuntington Ingalls Industries Inc (HII)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
HII
Huntington Ingalls Industries Inc
$362.17
+0.21%
INDUSTRIALS · Cap: $14.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 170% more annual revenue ($33.67B vs $12.48B). CMI leads profitability with a 8.4% profit margin vs 4.8%. HII appears more attractively valued with a PEG of 1.25. HII earns a higher WallStSmart Score of 63/100 (C+).
CMI
Buy59
out of 100
Grade: C
HII
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.7%
Fair Value
$370.38
Current Price
$671.01
$300.63 premium
Margin of Safety
-16.2%
Fair Value
$337.96
Current Price
$362.17
$24.21 premium
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
Reasonable price relative to book value
15.7% revenue growth
Earnings expanding 28.1% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
4.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : HII
The strongest argument for HII centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 15.7% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : HII
The primary concerns for HII are Profit Margin. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI profiles as a value stock while HII is a growth play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.14 — expect wider price swings.
HII is growing revenue faster at 15.7% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
HII scores higher overall (63/100 vs 59/100) and 15.7% revenue growth. 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.
Huntington Ingalls Industries Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Huntington Ingalls Industries (HII) is the largest military shipbuilding company in the United States as well as a provider of professional services to partners in government and industry.
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