WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 136% more annual revenue ($33.67B vs $14.27B). LTM leads profitability with a 10.2% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.81. LTM earns a higher WallStSmart Score of 63/100 (C+).

CMI

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

LTM

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 4.7Quality: 4.3
Piotroski: 5/9Altman Z: 1.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-62.4%)

Margin of Safety

-62.4%

Fair Value

$368.86

Current Price

$660.75

$291.89 premium

UndervaluedFair: $368.86Overvalued
LTMSignificantly Overvalued (-49.1%)

Margin of Safety

-49.1%

Fair Value

$41.15

Current Price

$50.00

$8.85 premium

UndervaluedFair: $41.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$91.35B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
41.4%8/10

Earnings expanding 41.4% YoY

LTM4 strengths · Avg: 9.5/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
142.9%10/10

Every $100 of equity generates 143 in profit

EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

LTM3 concerns · Avg: 2.7/10
Price/BookValuation
12.5x4/10

Trading at 12.5x book value

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : LTM

The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 16.1% 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.

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 1.14 — expect wider price swings.

LTM is growing revenue faster at 16.1% — sustainability is the question.

CMI generates stronger free cash flow (990M), providing more financial flexibility.

Bottom Line

LTM scores higher overall (63/100 vs 59/100) and 16.1% revenue growth. 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.

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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