Cummins Inc (CMI)vsIllinois Tool Works Inc (ITW)
CMI
Cummins Inc
$532.23
+1.59%
INDUSTRIALS · Cap: $76.64B
ITW
Illinois Tool Works Inc
$269.42
+0.71%
INDUSTRIALS · Cap: $76.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 111% more annual revenue ($34.71B vs $16.47B). ITW leads profitability with a 19.4% profit margin vs 7.8%. CMI appears more attractively valued with a PEG of 1.11. ITW earns a higher WallStSmart Score of 62/100 (C+).
CMI
Buy55
out of 100
Grade: C
ITW
Buy62
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
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 26.9%
Areas to Watch
Moderate valuation
4.7% earnings growth
7.8% margin — thin
Expensive relative to growth rate
Weak financial health signals
Trading at 26.5x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : 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 26.9%.
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 PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI profiles as a value stock while ITW is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.23 — 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.
Bottom Line
ITW scores higher overall (62/100 vs 55/100), backed by strong 19.4% margins. 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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