Cummins Inc (CMI)vsNovartis AG ADR (NVS)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
NVS
Novartis AG ADR
$146.03
+0.44%
HEALTHCARE · Cap: $277.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 67% more annual revenue ($56.58B vs $33.89B). NVS leads profitability with a 23.9% profit margin vs 7.9%. CMI appears more attractively valued with a PEG of 1.85. NVS earns a higher WallStSmart Score of 51/100 (C-).
CMI
Hold47
out of 100
Grade: D+
NVS
Buy51
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
-51.8%
Fair Value
$110.12
Current Price
$146.03
$35.91 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
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B 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
Grey zone — moderate risk
Expensive relative to growth rate
Revenue declined 0.7%
Earnings declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
CMI profiles as a value stock while NVS is a declining play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
CMI is growing revenue faster at 2.7% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
NVS scores higher overall (51/100 vs 47/100), backed by strong 23.9% 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.
Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
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