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CMI vs ETN
Which Stock Would AI Choose? Cummins Inc. (CMI) vs. Eaton Corporation plc (ETN) Stock Comparison
Key Takeaways
- ETN outperforms CMI year-to-date (YTD, a measure of performance from the start of the calendar year) with approximately 34% gains compared to CMI's 29%.
- Both stocks benefit from rising demand in data centers and power infrastructure, supporting recent momentum.
- ETN holds a larger market capitalization at $165 billion versus CMI's $91 billion, reflecting broader scale.
- Upcoming Q1 earnings reports for both companies highlight potential catalysts amid analyst scrutiny on earnings per share (EPS, a key profitability metric).
- ETN announced a $30 million investment to boost U.S. switchgear production, targeting AI-driven demand.
- CMI shows resilience in its power systems segment despite projections for flat sales growth.
Introduction
Cummins Inc. (CMI) and Eaton Corporation plc (ETN) operate in the industrials sector, focusing on power generation and management solutions critical for electrification and data centers. This stock comparison is relevant for investors and traders seeking exposure to AI infrastructure growth, where both companies benefit from surging demand for reliable power systems. Amid recent market activity, CMI and ETN have demonstrated relative strength, offering insights into momentum, valuation trade-offs, and sector positioning. Understanding their performance helps in evaluating portfolio diversification in power-related equities.
CMI Overview and Recent Performance
Cummins Inc. (CMI) is a global leader in designing, manufacturing, and servicing diesel and natural gas engines, power generation systems, and related technologies. In recent weeks, CMI shares have climbed around 20% over the past month, trading near $657 with a 52-week range of $291 to $675. This momentum stems from strong demand in the power systems segment, particularly for data centers, offsetting softer engine sales. However, analysts anticipate a modest EPS decline for the upcoming quarter, amid insider sales totaling about $17 million and projections for flat overall sales. Sentiment remains supported by the company's market cap of roughly $91 billion and a price-to-earnings (PE) ratio of 32, reflecting resilience in a transitioning energy landscape.
ETN Overview and Recent Performance
Eaton Corporation plc (ETN) provides power management solutions, including electrical components, systems, and services for diverse industries. Over recent market activity, ETN has sustained upward trajectory, with shares around $428 and a 52-week range of $293 to $435. Key drivers include a $30 million investment to expand U.S. switchgear capacity amid AI data center needs, bolstering investor confidence ahead of Q1 earnings. Expectations call for EPS of $2.74 and revenue of $7.09 billion. Trading at a PE ratio of 41 with a $165 billion market cap, ETN's performance underscores its positioning in high-growth electrification trends.
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Head-to-Head Comparison
CMI emphasizes engine manufacturing and power generation, contrasting ETN's focus on electrical power management and distribution. Growth drivers overlap in data center infrastructure, but ETN leverages broader electrification exposure. Recent momentum favors ETN with superior YTD gains and capacity investments, while CMI contends with cyclical engine demand risks. Valuation shows CMI at a lower PE, suggesting relative value, versus ETN's premium for scale. Sector risks include supply chain pressures, but market sentiment tilts positive for both amid AI tailwinds, with trade-offs in stability versus growth potential.
Tickeron AI Verdict
Tickeron’s AI analysis leans toward ETN in the current environment, driven by stronger YTD relative performance, larger market positioning, and proactive expansions like switchgear investments. While CMI offers solid data center exposure and attractive valuation, ETN's trend consistency and catalysts provide a probabilistic edge for momentum-focused strategies.
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 ETN 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 whileETN’s FA Score has 1 green FA rating(s).
- CMI’s FA Score: 3 green, 2 red.
- ETN’s FA Score: 1 green, 4 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 5 bullish TA indicator(s).
- CMI’s TA Score: 5 bullish, 4 bearish.
- ETN’s TA Score: 5 bullish, 4 bearish.
Price Growth
CMI (@Industrial Machinery) experienced а +1.28% price change this week, while ETN (@Industrial Machinery) price change was -1.15% 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.
ETN is expected to report earnings on Aug 04, 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 | ETN | CMI / ETN | |
| Capitalization | 91B | 152B | 60% |
| EBITDA | 5.23B | 6.22B | 84% |
| Gain YTD | 30.057 | 23.605 | 127% |
| P/E Ratio | 34.26 | 38.30 | 89% |
| Revenue | 33.9B | 28.5B | 119% |
| Total Cash | 3.18B | 751M | 424% |
| Total Debt | 8.24B | 21.8B | 38% |
CMI | ETN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 73 | 73 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 27 Undervalued | 63 Fair valued | |
PROFIT vs RISK RATING 1..100 | 6 | 23 | |
SMR RATING 1..100 | 42 | 45 | |
PRICE GROWTH RATING 1..100 | 41 | 49 | |
P/E GROWTH RATING 1..100 | 9 | 37 | |
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 (27) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for ETN (63) in the Electrical Products industry. This means that CMI’s stock grew somewhat faster than ETN’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 ETN (23) 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 (42) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (45) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
CMI's Price Growth Rating (41) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (49) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
CMI's P/E Growth Rating (9) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (37) 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 (%) | 3 days ago 57% | N/A |
| Stochastic ODDS (%) | 3 days ago 64% | 3 days ago 65% |
| Momentum ODDS (%) | 3 days ago 63% | 3 days ago 46% |
| MACD ODDS (%) | 3 days ago 46% | 3 days ago 60% |
| TrendWeek ODDS (%) | 3 days ago 65% | 3 days ago 61% |
| TrendMonth ODDS (%) | 3 days ago 55% | 3 days ago 67% |
| Advances ODDS (%) | 3 days ago 65% | 12 days ago 65% |
| Declines ODDS (%) | 5 days ago 54% | 5 days ago 54% |
| BollingerBands ODDS (%) | 3 days ago 66% | 3 days ago 71% |
| Aroon ODDS (%) | 3 days ago 62% | 3 days ago 74% |
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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.