Cummins Inc (CMI)vsResMed Inc (RMD)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
RMD
ResMed Inc
$226.31
-0.82%
HEALTHCARE · Cap: $33.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 524% more annual revenue ($33.67B vs $5.40B). RMD leads profitability with a 27.5% profit margin vs 8.4%. RMD appears more attractively valued with a PEG of 1.39. RMD earns a higher WallStSmart Score of 70/100 (B).
CMI
Buy61
out of 100
Grade: C+
RMD
Strong Buy70
out of 100
Grade: B
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
+14.4%
Fair Value
$303.30
Current Price
$226.31
$76.99 discount
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
Strong operational efficiency at 35.2%
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
1.1% revenue growth
No major concerns identified
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 : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.5% and operating margin at 35.2%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
CMI profiles as a value stock while RMD is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
RMD is growing revenue faster at 11.0% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
RMD scores higher overall (70/100 vs 61/100), backed by strong 27.5% margins and 11.0% revenue growth. CMI offers better value entry with a 37.7% margin of safety. Both earn "Strong 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.
ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?