Cummins Inc (CMI)vsIllinois Tool Works Inc (ITW)
CMI
Cummins Inc
$651.22
-3.96%
INDUSTRIALS · Cap: $93.79B
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $75.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 109% more annual revenue ($33.89B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 7.9%. CMI appears more attractively valued with a PEG of 1.63. ITW earns a higher WallStSmart Score of 60/100 (C).
CMI
Hold47
out of 100
Grade: D+
ITW
Buy60
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 22 in profit
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.7%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.3% and operating margin at 25.7%.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.83 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.24 — expect wider price swings.
ITW is growing revenue faster at 4.6% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 47/100), backed by strong 19.3% margins. Both earn "Buy" and "Hold" 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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