WallStSmart

Cummins Inc (CMI)vsXylem Inc (XYL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cummins Inc generates 273% more annual revenue ($33.67B vs $9.04B). XYL leads profitability with a 10.6% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.47. 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

XYL

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 7.3Quality: 7.5
Piotroski: 4/9Altman Z: 2.35
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
XYLSignificantly Overvalued (-179.5%)

Margin of Safety

-179.5%

Fair Value

$45.36

Current Price

$121.75

$76.39 premium

UndervaluedFair: $45.36Overvalued

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

XYL2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

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

XYL3 concerns · Avg: 4.0/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

P/E RatioValuation
30.8x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
3.0%4/10

3.0% earnings growth

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 : XYL

The strongest argument for XYL centers on Debt/Equity, Price/Book.

Bear Case : CMI

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

Bear Case : XYL

The primary concerns for XYL are PEG Ratio, P/E Ratio, EPS Growth.

Key Dynamics to Monitor

XYL carries more volatility with a beta of 1.17 — expect wider price swings.

XYL is growing revenue faster at 6.3% — 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 56/100). 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.

Xylem Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Xylem Inc. is a large American water technology provider, in public utility, residential, commercial, agricultural and industrial settings.

Visit Website →

Want to dig deeper into these stocks?