Cummins Inc (CMI)vsTarget Corporation (TGT)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
TGT
Target Corporation
$125.25
-0.50%
CONSUMER DEFENSIVE · Cap: $56.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 209% more annual revenue ($104.78B vs $33.89B). CMI leads profitability with a 7.9% profit margin vs 3.5%. CMI appears more attractively valued with a PEG of 1.85. TGT earns a higher WallStSmart Score of 48/100 (D+).
CMI
Hold47
out of 100
Grade: D+
TGT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$376.46
Current Price
$679.55
$303.09 premium
Margin of Safety
+33.2%
Fair Value
$171.51
Current Price
$125.25
$46.26 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
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
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
CMI is growing revenue faster at 2.7% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TGT scores higher overall (48/100 vs 47/100). Both earn "Hold" 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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