Cummins Inc (CMI)vsLennox International Inc (LII)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
LII
Lennox International Inc
$534.89
+3.34%
INDUSTRIALS · Cap: $18.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 548% more annual revenue ($33.67B vs $5.20B). LII leads profitability with a 15.5% profit margin vs 8.4%. LII appears more attractively valued with a PEG of 1.42. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
LII
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.7%
Fair Value
$370.38
Current Price
$671.01
$300.63 premium
Margin of Safety
-52.5%
Fair Value
$365.66
Current Price
$534.89
$169.23 premium
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
Every $100 of equity generates 76 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Trading at 16.0x book value
Weak financial health signals
Revenue declined 11.2%
Earnings declined 17.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : LII
The strongest argument for LII centers on Return on Equity, Altman Z-Score. Profitability is solid with margins at 15.5% and operating margin at 19.8%. PEG of 1.42 suggests the stock is reasonably priced for its growth.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : LII
The primary concerns for LII are Price/Book, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
CMI profiles as a value stock while LII is a declining play — different risk/reward profiles.
LII carries more volatility with a beta of 1.21 — expect wider price swings.
CMI is growing revenue faster at 1.1% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
CMI scores higher overall (59/100 vs 56/100). 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.
Lennox International Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Lennox International Inc. designs, manufactures and markets a range of products for the heating, ventilation, air conditioning and refrigeration markets in the United States, Canada and internationally. The company is headquartered in Richardson, Texas.
Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?