WallStSmart

Cummins Inc (CMI)vsSynchrony Financial (SYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 243% more annual revenue ($33.89B vs $9.89B). SYF leads profitability with a 36.4% profit margin vs 7.9%. CMI appears more attractively valued with a PEG of 1.85. SYF earns a higher WallStSmart Score of 77/100 (B+).

CMI

Hold

47

out of 100

Grade: D+

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

SYF

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 6.3Quality: 4.0
Piotroski: 5/9Altman Z: 0.03
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

Intrinsic value data unavailable for SYF.

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

SYF6 strengths · Avg: 9.2/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Profit MarginProfitability
36.4%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
48.0%10/10

Strong operational efficiency at 48.0%

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.1%8/10

Earnings expanding 20.1% YoY

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

SYF2 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.032/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : SYF

The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 36.4% and operating margin at 48.0%.

Bear Case : CMI

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

Bear Case : SYF

The primary concerns for SYF are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

CMI profiles as a value stock while SYF is a mature play — different risk/reward profiles.

SYF carries more volatility with a beta of 1.36 — expect wider price swings.

SYF is growing revenue faster at 6.1% — sustainability is the question.

SYF generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

SYF scores higher overall (77/100 vs 47/100), backed by strong 36.4% margins. Both earn "Strong 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.

Synchrony Financial

FINANCIAL SERVICES · CREDIT SERVICES · USA

Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.

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