Cummins Inc (CMI)vsTeradyne Inc (TER)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
TER
Teradyne Inc
$359.77
+1.60%
TECHNOLOGY · Cap: $55.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 795% more annual revenue ($33.89B vs $3.79B). TER leads profitability with a 22.6% profit margin vs 7.9%. TER appears more attractively valued with a PEG of 1.51. TER earns a higher WallStSmart Score of 75/100 (B+).
CMI
Hold47
out of 100
Grade: D+
TER
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$376.46
Current Price
$679.55
$303.09 premium
Intrinsic value data unavailable for TER.
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 37.6%
Revenue surging 87.0% year-over-year
Earnings expanding 314.8% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Keeps 23 of every $100 in revenue as profit
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
Premium valuation, high expectations priced in
Trading at 20.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% demonstrates continued momentum.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : TER
The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 65.7x leaves little room for execution misses.
Key Dynamics to Monitor
CMI profiles as a value stock while TER is a growth play — different risk/reward profiles.
TER carries more volatility with a beta of 1.79 — expect wider price swings.
TER is growing revenue faster at 87.0% — sustainability is the question.
TER generates stronger free cash flow (200M), providing more financial flexibility.
Bottom Line
TER scores higher overall (75/100 vs 47/100), backed by strong 22.6% margins and 87.0% revenue growth. 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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