Cummins Inc (CMI)vsEli Lilly and Company (LLY)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
LLY
Eli Lilly and Company
$916.31
+1.47%
HEALTHCARE · Cap: $808.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 94% more annual revenue ($65.18B vs $33.67B). LLY leads profitability with a 31.7% profit margin vs 8.4%. LLY appears more attractively valued with a PEG of 0.97. LLY earns a higher WallStSmart Score of 80/100 (A-).
CMI
Buy61
out of 100
Grade: C+
LLY
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
+14.0%
Fair Value
$1065.17
Current Price
$916.31
$148.86 discount
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
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Areas to Watch
Moderate valuation
1.1% revenue growth
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 30.9x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI profiles as a value stock while LLY is a growth play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
LLY scores higher overall (80/100 vs 61/100), backed by strong 31.7% margins and 42.6% revenue growth. CMI offers better value entry with a 37.7% margin of safety. Both earn "Exceptional 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.
Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
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