Cummins Inc (CMI)vsKratos Defense & Security Solutions (KTOS)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
KTOS
Kratos Defense & Security Solutions
$63.05
+5.86%
INDUSTRIALS · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 2400% more annual revenue ($33.67B vs $1.35B). CMI leads profitability with a 8.4% profit margin vs 1.6%. CMI appears more attractively valued with a PEG of 1.76. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
KTOS
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.7%
Fair Value
$370.38
Current Price
$671.01
$300.63 premium
Intrinsic value data unavailable for KTOS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Earnings expanding 41.4% YoY
Conservative balance sheet, low leverage
Revenue surging 21.9% year-over-year
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
ROE of 1.3% — below average capital efficiency
1.6% margin — thin
Operating margin of 2.9%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : KTOS
The strongest argument for KTOS centers on Debt/Equity, Revenue Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : KTOS
The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 458.1x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI profiles as a value stock while KTOS is a growth play — different risk/reward profiles.
KTOS carries more volatility with a beta of 1.22 — expect wider price swings.
KTOS is growing revenue faster at 21.9% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
CMI scores higher overall (59/100 vs 39/100). 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.
Kratos Defense & Security Solutions
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Kratos Defense & Security Solutions, Inc. is a government contractor for the US Department of Defense. The company is headquartered in San Diego, California.
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