WallStSmart

Cummins Inc (CMI)vsQuanex Building Products (NX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 1723% more annual revenue ($33.67B vs $1.85B). CMI leads profitability with a 8.4% profit margin vs -13.0%. NX appears more attractively valued with a PEG of 0.66. 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

NX

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 7.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$373.25

Current Price

$715.76

$342.51 premium

UndervaluedFair: $373.25Overvalued
NXUndervalued (+77.3%)

Margin of Safety

+77.3%

Fair Value

$98.50

Current Price

$20.11

$78.39 discount

UndervaluedFair: $98.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$90.90B9/10

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

NX2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

Areas to Watch

CMI4 concerns · Avg: 4.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

NX4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Market CapQuality
$899.93M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.7%3/10

Operating margin of 0.7%

Return on EquityProfitability
-28.2%2/10

ROE of -28.2% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : NX

The strongest argument for NX centers on Price/Book, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bear Case : CMI

The primary concerns for CMI are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : NX

The primary concerns for NX are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

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

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

NX is growing revenue faster at 2.3% — sustainability is the question.

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

Bottom Line

CMI scores higher overall (59/100 vs 47/100). NX offers better value entry with a 77.3% margin of safety. 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.

Quanex Building Products

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Quanex Building Products Corporation (NX) is a prominent manufacturer of innovative engineered materials and components for the building and construction sector, distinguished by its dedication to quality and sustainability. The company's extensive product offerings encompass energy-efficient window and door systems, alongside advanced engineered wood products, effectively addressing the needs of both residential and commercial markets. With an emphasis on operational excellence and a strong foundation in material science, Quanex utilizes its proprietary technologies to provide exceptional value, securing a competitive position in a rapidly evolving industry landscape focused on sustainable construction practices.

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