Cummins Inc (CMI)vsOtter Tail Corporation (OTTR)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
OTTR
Otter Tail Corporation
$86.55
-0.62%
INDUSTRIALS · Cap: $3.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 2482% more annual revenue ($33.67B vs $1.30B). OTTR leads profitability with a 21.2% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. OTTR earns a higher WallStSmart Score of 63/100 (C+).
CMI
Buy61
out of 100
Grade: C+
OTTR
Buy63
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
-92.9%
Fair Value
$44.54
Current Price
$86.55
$42.01 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
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 22.2%
Areas to Watch
Moderate valuation
1.1% revenue growth
Expensive relative to growth rate
1.6% revenue growth
Distress zone — elevated risk
Weak financial health signals
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 : OTTR
The strongest argument for OTTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 22.2%.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : OTTR
The primary concerns for OTTR are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
OTTR is growing revenue faster at 1.6% — 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
OTTR scores higher overall (63/100 vs 61/100), backed by strong 21.2% margins. 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.
Otter Tail Corporation
INDUSTRIALS · CONGLOMERATES · USA
Otter Tail Corporation is engaged in electrical service, manufacturing and plastic piping businesses in the United States. The company is headquartered in Fergus Falls, Minnesota.
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