WallStSmart

Cummins Inc (CMI)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 320% more annual revenue ($33.67B vs $8.01B). SNPS leads profitability with a 13.8% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. CMI earns a higher WallStSmart Score of 61/100 (C+).

CMI

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

SNPS

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 2.0Quality: 5.5
Piotroski: 1/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMIUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$960.80

Current Price

$553.36

$407.44 discount

UndervaluedFair: $960.80Overvalued
SNPSSignificantly Overvalued (-825.0%)

Margin of Safety

-825.0%

Fair Value

$44.34

Current Price

$410.13

$365.79 premium

UndervaluedFair: $44.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.65B9/10

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

SNPS3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

Market CapQuality
$78.57B9/10

Large-cap with strong market position

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

CMI2 concerns · Avg: 4.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

SNPS4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.772/10

Expensive relative to growth rate

P/E RatioValuation
62.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : SNPS

The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 65.5% demonstrates continued momentum.

Bear Case : CMI

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

Bear Case : SNPS

The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 62.9x leaves little room for execution misses.

Key Dynamics to Monitor

CMI profiles as a value stock while SNPS is a growth play — different risk/reward profiles.

SNPS carries more volatility with a beta of 1.16 — expect wider price swings.

SNPS is growing revenue faster at 65.5% — sustainability is the question.

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

Bottom Line

CMI scores higher overall (61/100 vs 51/100). 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.

Synopsys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.

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