Cummins Inc (CMI)vsTransdigm Group Incorporated (TDG)
CMI
Cummins Inc
$651.22
-3.96%
INDUSTRIALS · Cap: $92.82B
TDG
Transdigm Group Incorporated
$1,238.74
+0.87%
INDUSTRIALS · Cap: $69.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 257% more annual revenue ($33.89B vs $9.50B). TDG leads profitability with a 21.9% profit margin vs 7.9%. CMI appears more attractively valued with a PEG of 1.58. TDG earns a higher WallStSmart Score of 57/100 (C).
CMI
Hold47
out of 100
Grade: D+
TDG
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CMI.
Margin of Safety
-63.3%
Fair Value
$812.02
Current Price
$1238.74
$426.72 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
Strong operational efficiency at 46.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
18.3% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : TDG
The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 21.9% and operating margin at 46.7%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : TDG
The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
CMI profiles as a value stock while TDG is a growth play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
TDG is growing revenue faster at 18.3% — sustainability is the question.
CMI generates stronger free cash flow (120M), providing more financial flexibility.
Bottom Line
TDG scores higher overall (57/100 vs 47/100), backed by strong 21.9% margins and 18.3% revenue growth. 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.
Transdigm Group Incorporated
INDUSTRIALS · AEROSPACE & DEFENSE · USA
TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.
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