Cummins Inc (CMI)vsUnited Parcel Service Inc (UPS)
CMI
Cummins Inc
$638.95
-0.54%
INDUSTRIALS · Cap: $91.35B
UPS
United Parcel Service Inc
$106.61
+2.57%
INDUSTRIALS · Cap: $90.93B
Smart Verdict
WallStSmart Research — data-driven comparison
United Parcel Service Inc generates 163% more annual revenue ($88.66B vs $33.67B). CMI leads profitability with a 8.4% profit margin vs 6.3%. UPS appears more attractively valued with a PEG of 1.64. CMI earns a higher WallStSmart Score of 59/100 (C).
CMI
Buy59
out of 100
Grade: C
UPS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-61.7%
Fair Value
$370.38
Current Price
$638.95
$268.57 premium
Margin of Safety
+36.2%
Fair Value
$187.97
Current Price
$106.61
$81.36 discount
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
Every $100 of equity generates 34 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Generating 2.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.1% revenue growth
Expensive relative to growth rate
4.6% earnings growth
6.3% margin — thin
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 : UPS
The strongest argument for UPS centers on Return on Equity, Market Cap, P/E Ratio.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : UPS
The primary concerns for UPS are PEG Ratio, EPS Growth, Profit Margin. Debt-to-equity of 1.99 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.14 — expect wider price swings.
CMI is growing revenue faster at 1.1% — sustainability is the question.
UPS generates stronger free cash flow (2.6B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CMI scores higher overall (59/100 vs 51/100). UPS offers better value entry with a 36.2% margin of safety. 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.
United Parcel Service Inc
INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA
United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907.
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