Cummins Inc (CMI)vsIllinois Tool Works Inc (ITW)
CMI
Cummins Inc
$471.84
-5.76%
INDUSTRIALS · Cap: $68.84B
ITW
Illinois Tool Works Inc
$293.45
+2.38%
INDUSTRIALS · Cap: $79.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 109% more annual revenue ($34.71B vs $16.65B). ITW leads profitability with a 19.4% profit margin vs 7.8%. CMI appears more attractively valued with a PEG of 1.00. CMI earns a higher WallStSmart Score of 60/100 (C).
CMI
Buy60
out of 100
Grade: C
ITW
Buy58
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Growing faster than its price suggests
Generating 1.3B in free cash flow
Every $100 of equity generates 110 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 28.1%
Areas to Watch
Moderate valuation
4.7% earnings growth
7.8% margin — thin
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 26.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, PEG Ratio. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bull Case : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.4% and operating margin at 28.1%.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, EPS Growth, Profit Margin.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.24 — 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
CMI scores higher overall (60/100 vs 58/100). 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.
Illinois Tool Works Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.
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