Cummins Inc (CMI)vsSAP SE ADR (SAP)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
SAP
SAP SE ADR
$173.70
-0.58%
TECHNOLOGY · Cap: $204.11B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 10% more annual revenue ($37.34B vs $33.89B). SAP leads profitability with a 19.6% profit margin vs 7.9%. SAP appears more attractively valued with a PEG of 0.73. SAP earns a higher WallStSmart Score of 62/100 (C+).
CMI
Hold47
out of 100
Grade: D+
SAP
Buy62
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
-16.9%
Fair Value
$168.01
Current Price
$173.70
$5.69 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
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 3.3B 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
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
CMI profiles as a value stock while SAP is a mature play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
SAP is growing revenue faster at 6.0% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (62/100 vs 47/100), backed by strong 19.6% 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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