WallStSmart

Cummins Inc (CMI)vsNorfolk Southern Corporation (NSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 176% more annual revenue ($33.67B vs $12.19B). NSC leads profitability with a 21.9% profit margin vs 8.4%. 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

NSC

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 4/9
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

Intrinsic value data unavailable for NSC.

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

NSC3 strengths · Avg: 9.3/10
Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

Market CapQuality
$70.93B9/10

Large-cap with strong market position

Profit MarginProfitability
21.9%9/10

Keeps 22 of every $100 in revenue as profit

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

NSC4 concerns · Avg: 3.0/10
P/E RatioValuation
26.6x4/10

Moderate valuation

Revenue GrowthGrowth
0.2%4/10

0.2% revenue growth

PEG RatioValuation
4.642/10

Expensive relative to growth rate

EPS GrowthGrowth
-26.6%2/10

Earnings declined 26.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : NSC

The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 21.9% and operating margin at 32.3%.

Bear Case : CMI

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

Bear Case : NSC

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

Key Dynamics to Monitor

NSC carries more volatility with a beta of 1.31 — expect wider price swings.

CMI is growing revenue faster at 1.1% — sustainability is the question.

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

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CMI scores higher overall (59/100 vs 55/100). 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.

Norfolk Southern Corporation

INDUSTRIALS · RAILROADS · USA

The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.

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