WallStSmart

Cummins Inc (CMI)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 80% more annual revenue ($60.47B vs $33.67B). CMI leads profitability with a 8.4% profit margin vs 6.1%. CMI appears more attractively valued with a PEG of 1.81. UAL earns a higher WallStSmart Score of 70/100 (B-).

CMI

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

UAL

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 6.0Quality: 4.0
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-62.4%)

Margin of Safety

-62.4%

Fair Value

$368.86

Current Price

$660.75

$291.89 premium

UndervaluedFair: $368.86Overvalued
UALUndervalued (+14.4%)

Margin of Safety

+14.4%

Fair Value

$133.16

Current Price

$93.00

$40.16 discount

UndervaluedFair: $133.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$91.35B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
41.4%8/10

Earnings expanding 41.4% YoY

UAL5 strengths · Avg: 9.0/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
84.5%10/10

Earnings expanding 84.5% YoY

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.13B8/10

Generating 3.1B in free cash flow

Areas to Watch

CMI3 concerns · Avg: 4.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

UAL4 concerns · Avg: 2.5/10
Profit MarginProfitability
6.1%3/10

6.1% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

PEG RatioValuation
6.502/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.162/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

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

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 10.6% demonstrates continued momentum.

Bear Case : CMI

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

Bear Case : UAL

The primary concerns for UAL are Profit Margin, Operating Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

UAL carries more volatility with a beta of 1.29 — expect wider price swings.

UAL is growing revenue faster at 10.6% — sustainability is the question.

UAL generates stronger free cash flow (3.1B), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UAL scores higher overall (70/100 vs 59/100) and 10.6% revenue growth. 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.

United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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