Cummins Inc (CMI)vsWPP PLC ADR (WPP)
CMI
Cummins Inc
$679.55
-0.49%
INDUSTRIALS · Cap: $94.23B
WPP
WPP PLC ADR
$18.97
+1.12%
COMMUNICATION SERVICES · Cap: $4.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Cummins Inc generates 150% more annual revenue ($33.89B vs $13.55B). CMI leads profitability with a 7.9% profit margin vs -1.6%. CMI appears more attractively valued with a PEG of 1.85. CMI earns a higher WallStSmart Score of 47/100 (D+).
CMI
Hold47
out of 100
Grade: D+
WPP
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$376.46
Current Price
$679.55
$303.09 premium
Margin of Safety
+75.6%
Fair Value
$75.12
Current Price
$18.97
$56.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.7% revenue growth
7.9% margin — thin
Operating margin of 2.2%
Weak financial health signals
Expensive relative to growth rate
ROE of -5.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity.
Bull Case : WPP
The strongest argument for WPP centers on Free Cash Flow.
Bear Case : CMI
The primary concerns for CMI are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : WPP
The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.13 is elevated, increasing financial risk.
Key Dynamics to Monitor
CMI profiles as a value stock while WPP is a turnaround play — different risk/reward profiles.
CMI carries more volatility with a beta of 1.27 — expect wider price swings.
CMI is growing revenue faster at 2.7% — sustainability is the question.
WPP generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
CMI scores higher overall (47/100 vs 32/100). WPP offers better value entry with a 75.6% margin of safety. Both earn "Hold" and "Avoid" 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.
WPP PLC ADR
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.
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