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CMI vs ETN
Which Stock Would AI Choose? Cummins Inc. (CMI) vs. Eaton Corporation plc (ETN) Stock Comparison
Key Takeaways
- Cummins Inc. (CMI) operates in engine and power generation systems, while Eaton Corporation plc (ETN) focuses on electrical and power management solutions, exposing each to distinct industrial cycles.
- Recent market activity shows ETN with stronger year-over-year revenue growth compared to CMI, which reported more modest or flat results in the latest periods.
- ETN maintains higher operating margins and a larger market capitalization, reflecting broader exposure to electrification and data center demand.
- CMI has demonstrated resilience in heavy-duty engine markets but faces headwinds from slower industrial equipment spending in recent weeks.
- Relative performance metrics indicate ETN has shown more consistent upward momentum amid sector rotation toward electrical infrastructure.
- Both stocks trade in the specialty industrial machinery space, with investors monitoring macroeconomic indicators such as manufacturing output and energy transition policies.
Introduction
Investors and traders frequently compare Cummins Inc. (CMI) and Eaton Corporation plc (ETN) due to their positions in the industrial sector and sensitivity to economic cycles, infrastructure spending, and technological shifts. This analysis examines their business models, recent performance trends, and relative positioning to assist those evaluating exposure within specialty industrial machinery. Market participants seeking to understand sector dynamics, valuation contrasts, and momentum differences may find the comparison useful for portfolio construction or tactical allocation decisions in the current environment.
CMI Overview and Recent Performance
Cummins Inc. (CMI) designs, manufactures, and distributes engines, power generation equipment, and related components for on-highway, off-highway, and stationary applications. In recent weeks, the stock has reflected mixed sentiment influenced by softer demand in certain heavy-duty engine segments and broader industrial slowdown concerns. Market activity shows the shares trading near levels that incorporate tempered revenue growth expectations, with year-over-year comparisons highlighting challenges in select end markets. Analysts have noted the company’s efforts to diversify into alternative power solutions, which continue to shape investor views amid ongoing transition themes.
ETN Overview and Recent Performance
Eaton Corporation plc (ETN) provides electrical products, power management systems, and aerospace components, serving utilities, data centers, industrial, and commercial customers. Recent market activity has been supported by sustained demand for electrical infrastructure and electrification solutions. The stock has exhibited resilience, with performance reflecting strength in key verticals such as power distribution and intelligent power management. Broader sector rotation toward energy transition and grid modernization themes has contributed to relatively stable or positive sentiment in recent periods compared with some industrial peers.
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Head-to-Head Comparison
Cummins Inc. (CMI) and Eaton Corporation plc (ETN) differ in primary end markets, with CMI more concentrated in engine and mechanical power systems and ETN emphasizing electrical and power management technologies. Growth drivers for ETN include accelerating electrification and data center buildout, whereas CMI benefits from replacement cycles in transportation and industrial equipment. Recent momentum has favored ETN amid stronger revenue trends and higher operating margins. Risk factors for CMI involve cyclical exposure to heavy industry and commodity price fluctuations, while ETN faces competition in electrical components and supply chain dependencies. Sector exposure positions ETN with greater alignment to long-term infrastructure upgrades, creating trade-offs for investors balancing near-term industrial demand versus structural growth themes. Market sentiment reflects these distinctions, with valuation multiples and analyst commentary highlighting ETN’s premium positioning relative to CMI’s more value-oriented profile.
Tickeron AI Verdict
Based on observable factors such as revenue trajectory, margin stability, and sector tailwinds, Tickeron’s AI models currently assign a higher probabilistic weighting to Eaton Corporation plc (ETN) relative to Cummins Inc. (CMI). ETN’s positioning in electrical infrastructure and consistent growth indicators suggest stronger trend consistency in the prevailing environment, though outcomes remain subject to broader economic variables and sector-specific developments.
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.
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 ETN is a Buy.
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 2 FA rating(s) are green whileETN’s FA Score has 3 green FA rating(s).
- CMI’s FA Score: 2 green, 3 red.
- ETN’s FA Score: 3 green, 2 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 ETN’s TA Score has 6 bullish TA indicator(s).
- CMI’s TA Score: 5 bullish, 4 bearish.
- ETN’s TA Score: 6 bullish, 4 bearish.
Price Growth
CMI (@Industrial Machinery) experienced а -1.91% price change this week, while ETN (@Industrial Machinery) price change was +3.09% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +1.26%. For the same industry, the average monthly price growth was +0.32%, and the average quarterly price growth was -3.02%.
Reported Earning Dates
CMI is expected to report earnings on Oct 29, 2026.
ETN is expected to report earnings on Nov 03, 2026.
Industries' Descriptions
@Industrial Machinery (+1.26% 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 | ETN | CMI / ETN | |
| Capitalization | 87.8B | 179B | 49% |
| EBITDA | 5.23B | 6.45B | 81% |
| Gain YTD | 25.772 | 45.618 | 56% |
| P/E Ratio | 32.61 | 46.84 | 70% |
| Revenue | 33.9B | 30B | 113% |
| Total Cash | 3.18B | 565M | 563% |
| Total Debt | 8.24B | 21.8B | 38% |
CMI | ETN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 74 | 35 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 50 Fair valued | 79 Overvalued | |
PROFIT vs RISK RATING 1..100 | 7 | 16 | |
SMR RATING 1..100 | 43 | 79 | |
PRICE GROWTH RATING 1..100 | 51 | 19 | |
P/E GROWTH RATING 1..100 | 11 | 25 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
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.
CMI's Valuation (50) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (79) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
CMI's Profit vs Risk Rating (7) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (16) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
CMI's SMR Rating (43) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for ETN (79) in the Electrical Products industry. This means that CMI’s stock grew somewhat faster than ETN’s over the last 12 months.
ETN's Price Growth Rating (19) in the Electrical Products industry is in the same range as CMI (51) in the Trucks Or Construction Or Farm Machinery industry. This means that ETN’s stock grew similarly to CMI’s over the last 12 months.
CMI's P/E Growth Rating (11) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (25) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
| CMI | ETN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 81% | 2 days ago 68% |
| Stochastic ODDS (%) | 2 days ago 58% | 2 days ago 55% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 79% |
| MACD ODDS (%) | 2 days ago 74% | 2 days ago 75% |
| TrendWeek ODDS (%) | 2 days ago 57% | 2 days ago 69% |
| TrendMonth ODDS (%) | 2 days ago 56% | 2 days ago 70% |
| Advances ODDS (%) | 11 days ago 66% | 2 days ago 65% |
| Declines ODDS (%) | 3 days ago 55% | 16 days ago 55% |
| BollingerBands ODDS (%) | 2 days ago 76% | 2 days ago 46% |
| Aroon ODDS (%) | 2 days ago 41% | 2 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.