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CMI vs EMR
Which Stock Would AI Choose? Cummins Inc. (CMI) vs. Emerson Electric Co. (EMR) Stock Comparison
Key Takeaways
- CMI has significantly outperformed EMR year-to-date, with returns around 29% versus 4%, driven by strong industrial demand.
- Both stocks exhibit elevated trailing P/E ratios (price-to-earnings) near 32-34, but CMI's forward P/E of 25 suggests relatively attractive valuation amid growth.
- CMI boasts a higher return on equity (ROE, a measure of profitability relative to shareholders' equity) at 24% compared to EMR's 10%.
- Recent momentum favors CMI, with shares approaching 52-week highs, while EMR shows more volatility.
- Debt-to-equity ratios are comparable (around 60-70%), indicating similar leverage risks in the cyclical industrials sector.
- Upcoming quarterly earnings for both could shift sentiment, with analysts monitoring EPS trends and sector catalysts.
Introduction
Cummins Inc. (CMI) and Emerson Electric Co. (EMR) operate within the industrials sector, focusing on power systems and automation technologies, respectively. This stock comparison is relevant for investors seeking exposure to manufacturing recovery, data center expansion, and automation trends. Traders analyzing relative performance may find value in contrasting their momentum, valuations, and growth drivers amid recent market volatility. Both companies benefit from broader economic cycles but differ in business focus, making them suitable for portfolio diversification or sector rotation strategies. Understanding their head-to-head dynamics aids in evaluating market positioning and potential trade-offs in the current environment.
CMI Overview and Recent Performance
Cummins Inc. (CMI) is a leading designer and manufacturer of engines, power generation systems, and related technologies for trucks, construction, and data centers. In recent market activity, CMI shares have shown robust gains, with year-to-date returns exceeding 29% and one-year gains over 127%, outperforming broader indices. This momentum stems from heightened demand for power solutions, particularly in data centers, alongside quarterly earnings growth of 42% year-over-year. Sentiment has been bolstered by analyst upgrades and proximity to 52-week highs around $675, though upcoming Q1 results introduce some caution due to projected EPS dips and insider sales. Trading near $657 with a market cap of about $91 billion, CMI reflects resilience in industrial cycles.
EMR Overview and Recent Performance
Emerson Electric Co. (EMR) specializes in automation software, process controls, and measurement instruments for industries like energy and manufacturing. Recent weeks have brought mixed results for EMR, with year-to-date returns of roughly 4% and one-year gains around 32%, trailing sector peers. Shares, trading near $137 with a $77 billion market cap, have experienced volatility, including short-term drops amid broader market gains and insider dispositions. Positive factors include steady profit margins over 12% and upcoming Q2 earnings expectations for EPS growth, though analysts note valuation concerns despite recent 10% upticks. Demand for automation persists, but slower revenue expansion has tempered enthusiasm compared to high-momentum industrials.
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Head-to-Head Comparison
CMI and EMR share industrials sector exposure but diverge in models: CMI emphasizes hardware like engines ($34B revenue), while EMR leans toward software/services ($18B revenue). Growth drivers contrast with CMI's data center power surge versus EMR's automation steady-state. Recent momentum tilts to CMI (29% YTD vs. 4%), though both face cyclical risks from economic slowdowns. Leverage is balanced (debt/equity 60-70%), but CMI edges in ROE and free cash flow efficiency. Market sentiment favors CMI's stability, while EMR offers dividend appeal (1.6% yield). Trade-offs hinge on hardware recovery versus tech integration.
Tickeron AI Verdict
Tickeron’s AI currently favors CMI over EMR, based on superior trend consistency, 29% YTD gains, elevated ROE, and alignment with power demand catalysts. EMR trails in relative performance despite solid margins, suggesting probabilistic edge for CMI in the near term absent major shifts.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CMI is a StrongBuy and EMR is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CMI’s FA Score shows that 3 FA rating(s) are green whileEMR’s FA Score has 2 green FA rating(s).
- CMI’s FA Score: 3 green, 2 red.
- EMR’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CMI’s TA Score shows that 5 TA indicator(s) are bullish while EMR’s TA Score has 6 bullish TA indicator(s).
- CMI’s TA Score: 5 bullish, 4 bearish.
- EMR’s TA Score: 6 bullish, 3 bearish.
Price Growth
CMI (@Industrial Machinery) experienced а +1.28% price change this week, while EMR (@Industrial Machinery) price change was +3.58% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +1.88%. For the same industry, the average monthly price growth was +0.62%, and the average quarterly price growth was +4.30%.
Reported Earning Dates
CMI is expected to report earnings on Aug 04, 2026.
EMR is expected to report earnings on Aug 11, 2026.
Industries' Descriptions
@Industrial Machinery (+1.88% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
| CMI | EMR | CMI / EMR | |
| Capitalization | 91B | 80.1B | 114% |
| EBITDA | 5.23B | 5.05B | 103% |
| Gain YTD | 30.057 | 8.650 | 347% |
| P/E Ratio | 34.26 | 33.12 | 103% |
| Revenue | 33.9B | 18.3B | 185% |
| Total Cash | 3.18B | 1.79B | 178% |
| Total Debt | 8.24B | 14.1B | 58% |
CMI | EMR | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 73 | 34 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 27 Undervalued | 23 Undervalued | |
PROFIT vs RISK RATING 1..100 | 6 | 34 | |
SMR RATING 1..100 | 42 | 64 | |
PRICE GROWTH RATING 1..100 | 41 | 31 | |
P/E GROWTH RATING 1..100 | 9 | 61 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
EMR's Valuation (23) in the Electrical Products industry is in the same range as CMI (27) in the Trucks Or Construction Or Farm Machinery industry. This means that EMR’s stock grew similarly to CMI’s over the last 12 months.
CMI's Profit vs Risk Rating (6) in the Trucks Or Construction Or Farm Machinery industry is in the same range as EMR (34) in the Electrical Products industry. This means that CMI’s stock grew similarly to EMR’s over the last 12 months.
CMI's SMR Rating (42) in the Trucks Or Construction Or Farm Machinery industry is in the same range as EMR (64) in the Electrical Products industry. This means that CMI’s stock grew similarly to EMR’s over the last 12 months.
EMR's Price Growth Rating (31) in the Electrical Products industry is in the same range as CMI (41) in the Trucks Or Construction Or Farm Machinery industry. This means that EMR’s stock grew similarly to CMI’s over the last 12 months.
CMI's P/E Growth Rating (9) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for EMR (61) in the Electrical Products industry. This means that CMI’s stock grew somewhat faster than EMR’s over the last 12 months.
| CMI | EMR | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 57% | N/A |
| Stochastic ODDS (%) | 3 days ago 64% | 3 days ago 59% |
| Momentum ODDS (%) | 3 days ago 63% | 3 days ago 60% |
| MACD ODDS (%) | 3 days ago 46% | 3 days ago 66% |
| TrendWeek ODDS (%) | 3 days ago 65% | 3 days ago 59% |
| TrendMonth ODDS (%) | 3 days ago 55% | 3 days ago 54% |
| Advances ODDS (%) | 3 days ago 65% | 3 days ago 60% |
| Declines ODDS (%) | 5 days ago 54% | 27 days ago 56% |
| BollingerBands ODDS (%) | 3 days ago 66% | N/A |
| Aroon ODDS (%) | 3 days ago 62% | 3 days ago 58% |
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CMI and
Correlation & Price change
A.I.dvisor indicates that over the last year, CMI has been closely correlated with DOV. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if CMI jumps, then DOV could also see price increases.
EMR and
Correlation & Price change
A.I.dvisor indicates that over the last year, EMR has been closely correlated with ROK. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if EMR jumps, then ROK could also see price increases.