Cummins Inc (CMI)vsWells Fargo & Company (WFC)
CMI
Cummins Inc
$553.36
-0.25%
INDUSTRIALS · Cap: $76.65B
WFC
Wells Fargo & Company
$80.26
+0.82%
FINANCIAL SERVICES · Cap: $245.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 138% more annual revenue ($80.04B vs $33.67B). WFC leads profitability with a 26.7% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. WFC earns a higher WallStSmart Score of 72/100 (B).
CMI
Buy61
out of 100
Grade: C+
WFC
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$960.80
Current Price
$553.36
$407.44 discount
Margin of Safety
+53.8%
Fair Value
$173.78
Current Price
$80.26
$93.52 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
Mega-cap, among the largest globally
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Generating 4.1B in free cash flow
Areas to Watch
Moderate valuation
1.1% revenue growth
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : WFC
The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.9%.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Bear Case : WFC
The primary concerns for WFC are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
CMI carries more volatility with a beta of 1.13 — expect wider price swings.
WFC is growing revenue faster at 5.0% — sustainability is the question.
WFC generates stronger free cash flow (4.1B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WFC scores higher overall (72/100 vs 61/100), backed by strong 26.7% margins. CMI offers better value entry with a 37.7% margin of safety. 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.
Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
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