WallStSmart

Cummins Inc (CMI)vsHuntington Ingalls Industries Inc (HII)

VS

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

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

HII

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 4.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-61.7%)

Margin of Safety

-61.7%

Fair Value

$370.38

Current Price

$671.01

$300.63 premium

UndervaluedFair: $370.38Overvalued
HIISignificantly Overvalued (-16.2%)

Margin of Safety

-16.2%

Fair Value

$337.96

Current Price

$362.17

$24.21 premium

UndervaluedFair: $337.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$88.34B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
41.4%8/10

Earnings expanding 41.4% YoY

HII3 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

EPS GrowthGrowth
28.1%8/10

Earnings expanding 28.1% YoY

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

HII1 concerns · Avg: 3.0/10
Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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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