WallStSmart

Cummins Inc (CMI)vsUnitedHealth Group Incorporated (UNH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

UnitedHealth Group Incorporated generates 1229% more annual revenue ($447.57B vs $33.67B). CMI leads profitability with a 8.4% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 0.98. CMI earns a higher WallStSmart Score of 61/100 (C+).

CMI

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.91

UNH

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 7.3Quality: 5.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMIUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$960.80

Current Price

$553.36

$407.44 discount

UndervaluedFair: $960.80Overvalued
UNHSignificantly Overvalued (-202.7%)

Margin of Safety

-202.7%

Fair Value

$89.96

Current Price

$270.55

$180.59 premium

UndervaluedFair: $89.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMI3 strengths · Avg: 8.7/10
Market CapQuality
$76.65B9/10

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

UNH3 strengths · Avg: 8.7/10
Market CapQuality
$250.15B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

CMI2 concerns · Avg: 4.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

UNH3 concerns · Avg: 2.7/10
Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

EPS GrowthGrowth
-99.9%2/10

Earnings declined 99.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : CMI

The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bull Case : UNH

The strongest argument for UNH centers on Market Cap, PEG Ratio, Price/Book. Revenue growth of 12.3% demonstrates continued momentum. PEG of 0.98 suggests the stock is reasonably priced for its growth.

Bear Case : CMI

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

Bear Case : UNH

The primary concerns for UNH are Profit Margin, Operating Margin, EPS Growth. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

CMI carries more volatility with a beta of 1.13 — expect wider price swings.

UNH is growing revenue faster at 12.3% — sustainability is the question.

CMI generates stronger free cash flow (990M), providing more financial flexibility.

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

Bottom Line

CMI scores higher overall (61/100 vs 59/100). Both earn "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.

UnitedHealth Group Incorporated

HEALTHCARE · HEALTHCARE PLANS · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.

Visit Website →

Want to dig deeper into these stocks?