Cummins Inc (CMI)vsTrinity Industries Inc (TRN)
CMI
Cummins Inc
$656.73
-0.11%
INDUSTRIALS · Cap: $90.90B
TRN
Trinity Industries Inc
$35.85
+3.49%
INDUSTRIALS · Cap: $2.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 1532% more annual revenue ($33.67B vs $2.06B). TRN leads profitability with a 12.4% profit margin vs 8.4%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 67/100 (B-).
CMI
Buy59
out of 100
Grade: C
TRN
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.5%
Fair Value
$373.25
Current Price
$656.73
$283.48 premium
Margin of Safety
-18.6%
Fair Value
$26.70
Current Price
$35.85
$9.15 premium
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
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Revenue declined 16.0%
Negative free cash flow — burning cash
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : TRN
The strongest argument for TRN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.69 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 : TRN
The primary concerns for TRN are Revenue Growth, Free Cash Flow, Debt/Equity. Debt-to-equity of 5.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI profiles as a value stock while TRN is a declining play — different risk/reward profiles.
TRN carries more volatility with a beta of 1.45 — expect wider price swings.
CMI is growing revenue faster at 1.1% — sustainability is the question.
CMI generates stronger free cash flow (990M), providing more financial flexibility.
Bottom Line
TRN scores higher overall (67/100 vs 59/100). Both earn "Strong 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.
Trinity Industries Inc
INDUSTRIALS · RAILROADS · USA
Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.
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