Cummins Inc (CMI)vsMotorola Solutions Inc (MSI)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
MSI
Motorola Solutions Inc
$451.01
-0.82%
TECHNOLOGY · Cap: $75.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 188% more annual revenue ($33.67B vs $11.68B). MSI leads profitability with a 18.4% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. MSI earns a higher WallStSmart Score of 62/100 (C+).
CMI
Buy61
out of 100
Grade: C+
MSI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
-60.8%
Fair Value
$261.93
Current Price
$451.01
$189.08 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
Every $100 of equity generates 104 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Generating 1.1B in free cash flow
Areas to Watch
Moderate valuation
1.1% revenue growth
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 31.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : MSI
The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : MSI
The primary concerns for MSI are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 4.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI profiles as a value stock while MSI is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
MSI is growing revenue faster at 12.3% — sustainability is the question.
MSI generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
MSI scores higher overall (62/100 vs 61/100), backed by strong 18.4% margins and 12.3% revenue growth. CMI offers better value entry with a 37.7% margin of safety. 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.
Motorola Solutions Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.
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