WallStSmart

Cummins Inc (CMI)vsKadant Inc (KAI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 3100% more annual revenue ($33.67B vs $1.05B). KAI leads profitability with a 9.7% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. CMI earns a higher WallStSmart Score of 61/100 (C+).

CMI

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

KAI

Hold

46

out of 100

Grade: D+

Growth: 4.7Profit: 6.0Value: 4.7Quality: 6.8
Piotroski: 3/9Altman Z: 3.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMIUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$960.80

Current Price

$553.36

$407.44 discount

UndervaluedFair: $960.80Overvalued
KAISignificantly Overvalued (-469.3%)

Margin of Safety

-469.3%

Fair Value

$58.82

Current Price

$315.48

$256.66 premium

UndervaluedFair: $58.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.65B9/10

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

KAI1 strengths · Avg: 10.0/10
Altman Z-ScoreHealth
3.0510/10

Safe zone — low bankruptcy risk

Areas to Watch

CMI2 concerns · Avg: 4.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

KAI4 concerns · Avg: 2.8/10
P/E RatioValuation
37.4x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.232/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.1%2/10

Earnings declined 0.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bull Case : KAI

The strongest argument for KAI centers on Altman Z-Score. Revenue growth of 10.9% demonstrates continued momentum.

Bear Case : CMI

The primary concerns for CMI are P/E Ratio, Revenue Growth.

Bear Case : KAI

The primary concerns for KAI are P/E Ratio, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

KAI carries more volatility with a beta of 1.21 — expect wider price swings.

KAI is growing revenue faster at 10.9% — sustainability is the question.

CMI generates stronger free cash flow (990M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CMI scores higher overall (61/100 vs 46/100). 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.

Kadant Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Kadant Inc. supplies critical components and engineered systems globally. The company is headquartered in Westford, Massachusetts.

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