WallStSmart

Cummins Inc (CMI)vsRXO Inc. (RXO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 490% more annual revenue ($33.89B vs $5.74B). CMI leads profitability with a 7.9% profit margin vs -1.7%. CMI appears more attractively valued with a PEG of 1.85. CMI earns a higher WallStSmart Score of 47/100 (D+).

CMI

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

RXO

Hold

37

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-59.1%)

Margin of Safety

-59.1%

Fair Value

$376.46

Current Price

$679.55

$303.09 premium

UndervaluedFair: $376.46Overvalued
RXOUndervalued (+69.8%)

Margin of Safety

+69.8%

Fair Value

$54.13

Current Price

$21.75

$32.38 discount

UndervaluedFair: $54.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI2 strengths · Avg: 9.0/10
Market CapQuality
$94.23B9/10

Large-cap with strong market position

Return on EquityProfitability
22.0%9/10

Every $100 of equity generates 22 in profit

RXO1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

CMI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

RXO4 concerns · Avg: 2.0/10
PEG RatioValuation
22.222/10

Expensive relative to growth rate

Return on EquityProfitability
-6.3%2/10

ROE of -6.3% — below average capital efficiency

Revenue GrowthGrowth
-11.9%2/10

Revenue declined 11.9%

EPS GrowthGrowth
-93.2%2/10

Earnings declined 93.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : RXO

The strongest argument for RXO centers on Price/Book.

Bear Case : CMI

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

Bear Case : RXO

The primary concerns for RXO are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

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

RXO carries more volatility with a beta of 1.85 — expect wider price swings.

CMI is growing revenue faster at 2.7% — sustainability is the question.

CMI generates stronger free cash flow (120M), providing more financial flexibility.

Bottom Line

CMI scores higher overall (47/100 vs 37/100). RXO offers better value entry with a 69.8% margin of safety. Both earn "Hold" 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.

RXO Inc.

INDUSTRIALS · TRUCKING · USA

RXO Inc. is a premier transportation and logistics provider specializing in efficient freight solutions throughout North America. Utilizing cutting-edge technology and advanced data analytics, RXO enhances supply chain operations to ensure timely and cost-effective delivery for its clients. The company's unwavering commitment to sustainability and innovation positions it favorably within the evolving logistics landscape, appealing to institutional investors. With an extensive network and robust strategic partnerships, RXO adeptly meets diverse customer demands, solidifying its role as a significant player in the logistics sector.

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