WallStSmart

Cummins Inc (CMI)vsLoar Holdings Inc. (LOAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 6203% more annual revenue ($33.89B vs $537.71M). LOAR leads profitability with a 12.6% profit margin vs 7.9%. CMI trades at a lower P/E of 35.5x. LOAR earns a higher WallStSmart Score of 47/100 (D+).

CMI

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

LOAR

Hold

47

out of 100

Grade: D+

Growth: 7.3Profit: 6.0Value: 4.0Quality: 8.5
Piotroski: 5/9Altman Z: 2.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-59.1%)

Margin of Safety

-59.1%

Fair Value

$376.46

Current Price

$679.55

$303.09 premium

UndervaluedFair: $376.46Overvalued

Intrinsic value data unavailable for LOAR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI2 strengths · Avg: 9.0/10
Market CapQuality
$94.23B9/10

Large-cap with strong market position

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

LOAR3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
36.1%10/10

Revenue surging 36.1% year-over-year

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

Areas to Watch

CMI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

LOAR3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

P/E RatioValuation
84.7x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-25.6%2/10

Earnings declined 25.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity.

Bull Case : LOAR

The strongest argument for LOAR centers on Revenue Growth, Debt/Equity, Operating Margin. Revenue growth of 36.1% demonstrates continued momentum.

Bear Case : CMI

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

Bear Case : LOAR

The primary concerns for LOAR are Return on Equity, P/E Ratio, EPS Growth. A P/E of 84.7x leaves little room for execution misses.

Key Dynamics to Monitor

CMI profiles as a value stock while LOAR is a growth play — different risk/reward profiles.

CMI carries more volatility with a beta of 1.27 — expect wider price swings.

LOAR is growing revenue faster at 36.1% — sustainability is the question.

CMI generates stronger free cash flow (120M), providing more financial flexibility.

Bottom Line

CMI scores higher overall (47/100 vs 47/100). Both earn "Hold" 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.

Loar Holdings Inc.

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Loar Holdings Inc. is a diversified investment and holding company primarily focused on acquiring and managing assets in the technology and real estate sectors. With a commitment to sustainable growth and value creation, Loar employs innovative strategies to enhance operational efficiencies and maximize shareholder returns. By targeting emerging market opportunities, the company positions itself as a compelling investment prospect for institutional investors aiming to diversify their portfolios while pursuing long-term financial objectives.

Visit Website →

Want to dig deeper into these stocks?