Cummins Inc (CMI)vsMcDonald’s Corporation (MCD)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 23% more annual revenue ($33.89B vs $27.45B). MCD leads profitability with a 31.6% profit margin vs 7.9%. CMI appears more attractively valued with a PEG of 1.85. MCD earns a higher WallStSmart Score of 55/100 (C-).
CMI
Hold47
out of 100
Grade: D+
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$376.46
Current Price
$679.55
$303.09 premium
Margin of Safety
-80.4%
Fair Value
$157.30
Current Price
$275.75
$118.45 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 45.3%.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
CMI profiles as a value stock while MCD is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (55/100 vs 47/100), backed by strong 31.6% margins. 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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