Cummins Inc (CMI)vsLouisiana-Pacific Corporation (LPX)
CMI
Cummins Inc
$682.88
-4.59%
INDUSTRIALS · Cap: $90.90B
LPX
Louisiana-Pacific Corporation
$75.49
+4.14%
INDUSTRIALS · Cap: $5.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 1216% more annual revenue ($33.67B vs $2.56B). CMI leads profitability with a 8.4% profit margin vs 3.2%. CMI appears more attractively valued with a PEG of 1.80. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
LPX
Avoid35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$373.25
Current Price
$682.88
$309.63 premium
Margin of Safety
-8.2%
Fair Value
$89.70
Current Price
$75.49
$14.21 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
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
ROE of 4.8% — below average capital efficiency
3.2% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : LPX
The strongest argument for LPX centers on Altman Z-Score, Debt/Equity.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : LPX
The primary concerns for LPX are Return on Equity, Profit Margin, PEG Ratio. A P/E of 64.5x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
LPX carries more volatility with a beta of 1.59 — expect wider price swings.
CMI is growing revenue faster at 1.1% — sustainability is the question.
CMI generates stronger free cash flow (120M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CMI scores higher overall (59/100 vs 35/100). Both earn "Buy" and "Avoid" 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.
Louisiana-Pacific Corporation
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Louisiana-Pacific Corporation, manufactures and markets construction products primarily for use in the construction, repair and remodeling of new homes and outdoor structures markets. The company is headquartered in Nashville, Tennessee.
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