WallStSmart

Cummins Inc (CMI)vsLATAM Airlines Group S.A. (LTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 126% more annual revenue ($33.89B vs $15.00B). LTM leads profitability with a 11.2% profit margin vs 7.9%. CMI appears more attractively valued with a PEG of 1.58. LTM earns a higher WallStSmart Score of 65/100 (C+).

CMI

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 4.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.99

LTM

Buy

65

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI2 strengths · Avg: 9.0/10
Market CapQuality
$92.82B9/10

Large-cap with strong market position

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

LTM4 strengths · Avg: 9.5/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
86.9%10/10

Every $100 of equity generates 87 in profit

EPS GrowthGrowth
70.7%10/10

Earnings expanding 70.7% YoY

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

Areas to Watch

CMI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.584/10

Expensive relative to growth rate

P/E RatioValuation
35.0x4/10

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

LTM4 concerns · Avg: 2.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

Debt/EquityHealth
4.341/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : LTM

The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS 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 : LTM

The primary concerns for LTM are Price/Book, PEG Ratio, Altman Z-Score. Debt-to-equity of 4.34 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

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

LTM is growing revenue faster at 21.9% — sustainability is the question.

LTM generates stronger free cash flow (588M), providing more financial flexibility.

Bottom Line

LTM scores higher overall (65/100 vs 47/100) and 21.9% revenue growth. 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.

LATAM Airlines Group S.A.

INDUSTRIALS · AIRLINES · USA

LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.

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