WallStSmart

Cummins Inc (CMI)vsUnited Parcel Service Inc (UPS)

VS

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

Buy

59

out of 100

Grade: C

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

UPS

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMISignificantly Overvalued (-61.7%)

Margin of Safety

-61.7%

Fair Value

$370.38

Current Price

$638.95

$268.57 premium

UndervaluedFair: $370.38Overvalued
UPSUndervalued (+36.2%)

Margin of Safety

+36.2%

Fair Value

$187.97

Current Price

$106.61

$81.36 discount

UndervaluedFair: $187.97Overvalued

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

UPS4 strengths · Avg: 8.8/10
Return on EquityProfitability
33.8%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$90.93B9/10

Large-cap with strong market position

P/E RatioValuation
16.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B 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

UPS4 concerns · Avg: 3.5/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.993/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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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