WallStSmart

Cummins Inc (CMI)vsMercury Systems Inc (MRCY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 3472% more annual revenue ($33.67B vs $942.54M). CMI leads profitability with a 8.4% profit margin vs -3.2%. CMI appears more attractively valued with a PEG of 1.76. CMI earns a higher WallStSmart Score of 59/100 (C).

CMI

Buy

59

out of 100

Grade: C

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

MRCY

Avoid

29

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 3.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-61.7%)

Margin of Safety

-61.7%

Fair Value

$370.38

Current Price

$671.01

$300.63 premium

UndervaluedFair: $370.38Overvalued
MRCYSignificantly Overvalued (-33.7%)

Margin of Safety

-33.7%

Fair Value

$60.07

Current Price

$74.75

$14.68 premium

UndervaluedFair: $60.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$88.34B9/10

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

MRCY0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

MRCY4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

PEG RatioValuation
2.792/10

Expensive relative to growth rate

Return on EquityProfitability
-2.1%2/10

ROE of -2.1% — below average capital efficiency

EPS GrowthGrowth
-34.7%2/10

Earnings declined 34.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : MRCY

MRCY has a balanced fundamental profile.

Bear Case : CMI

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

Bear Case : MRCY

The primary concerns for MRCY are Revenue Growth, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

CMI profiles as a value stock while MRCY is a turnaround play — different risk/reward profiles.

CMI carries more volatility with a beta of 1.14 — expect wider price swings.

MRCY is growing revenue faster at 4.4% — sustainability is the question.

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

Bottom Line

CMI scores higher overall (59/100 vs 29/100). 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.

Mercury Systems Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Mercury Systems, Inc., a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and Asia Pacific. The company is headquartered in Andover, Massachusetts.

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