Cummins Inc (CMI)vsSpotify Technology SA (SPOT)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
SPOT
Spotify Technology SA
$417.83
-2.25%
COMMUNICATION SERVICES · Cap: $87.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 93% more annual revenue ($33.89B vs $17.53B). SPOT leads profitability with a 15.4% profit margin vs 7.9%. SPOT appears more attractively valued with a PEG of 1.83. SPOT earns a higher WallStSmart Score of 64/100 (C+).
CMI
Hold47
out of 100
Grade: D+
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.4%
Fair Value
$378.02
Current Price
$679.55
$301.53 premium
Margin of Safety
-44.3%
Fair Value
$337.63
Current Price
$417.83
$80.20 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
Every $100 of equity generates 38 in profit
Earnings expanding 222.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
Expensive relative to growth rate
Moderate valuation
Trading at 8.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
CMI profiles as a value stock while SPOT is a mature play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
SPOT is growing revenue faster at 8.2% — sustainability is the question.
SPOT generates stronger free cash flow (845M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (64/100 vs 47/100), backed by strong 15.4% 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.
Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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