Cummins Inc (CMI)vsSmith & Wesson Brands Inc (SWBI)
CMI
Cummins Inc
$671.01
+5.02%
INDUSTRIALS · Cap: $88.34B
SWBI
Smith & Wesson Brands Inc
$15.54
+0.84%
INDUSTRIALS · Cap: $678.09M
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 6825% more annual revenue ($33.67B vs $486.22M). CMI leads profitability with a 8.4% profit margin vs 2.2%. SWBI appears more attractively valued with a PEG of 0.84. SWBI earns a higher WallStSmart Score of 60/100 (C).
CMI
Buy59
out of 100
Grade: C
SWBI
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.7%
Fair Value
$370.38
Current Price
$671.01
$300.63 premium
Margin of Safety
+20.4%
Fair Value
$14.81
Current Price
$15.54
$0.73 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
Earnings expanding 67.6% YoY
Growing faster than its price suggests
Reasonable price relative to book value
17.1% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Smaller company, higher risk/reward
ROE of 3.0% — below average capital efficiency
2.2% margin — thin
Operating margin of 4.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : SWBI
The strongest argument for SWBI centers on EPS Growth, PEG Ratio, Price/Book. Revenue growth of 17.1% demonstrates continued momentum. PEG of 0.84 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 : SWBI
The primary concerns for SWBI are Market Cap, Return on Equity, Profit Margin. A P/E of 63.5x leaves little room for execution misses. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI profiles as a value stock while SWBI is a growth play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.14 — expect wider price swings.
SWBI is growing revenue faster at 17.1% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
SWBI scores higher overall (60/100 vs 59/100) and 17.1% revenue growth. 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.
Smith & Wesson Brands Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Smith & Wesson Brands, Inc. designs, manufactures and sells firearms worldwide. The company is headquartered in Springfield, Massachusetts.
Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?