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CMI vs ETN
Which Stock Would AI Choose? Cummins (CMI) vs. Eaton (ETN) Stock Comparison
Key Takeaways
- Both CMI and ETN are leveraged to the same secular megatrend — surging demand for electrical power driven by data centers and artificial intelligence (AI) — but they monetize it in different ways.
- Cummins generates growth from backup power generation systems and engines, while Eaton supplies electrical equipment, distribution, and aerospace components with a higher-margin, asset-light profile.
- Eaton has posted stronger recent momentum, with record quarterly results, double-digit organic sales growth, and an expanding backlog, whereas Cummins has faced headwinds from soft North American truck demand.
- Cummins offers a more diversified but cyclically sensitive business model tied to commercial vehicles; Eaton is pivoting toward pure-play electrical and aerospace exposure through a planned spin-off of its Mobility segment.
- Relative performance and market positioning favor Eaton's trend consistency, though Cummins' power-generation franchise and valuation present a contrasting trade-off.
Introduction
Investors hunting for exposure to electrification and the AI-driven buildout of data centers frequently land on the same two industrial names: Cummins and Eaton. While both companies are often grouped together as "electrification plays," their businesses, growth drivers, and risk profiles differ meaningfully. This stock comparison examines how CMI and ETN stack up on relative performance, market positioning, and recent developments. The analysis is relevant for both long-term investors evaluating industrial leaders and active traders seeking to understand where momentum and fundamentals currently align.
CMI Overview and Recent Performance
Cummins Inc. is a global power leader headquartered in Columbus, Indiana, operating five segments: Engine, Components, Distribution, Power Systems, and Accelera (its zero-emissions technology arm). The company designs and manufactures diesel, alternative fuel, electric, and hybrid powertrains, along with power generation systems.
In recent quarters, CMI has delivered solid but uneven results. Its Power Systems segment has been a standout, posting record annual revenue and profitability driven by strong demand for data center backup power. Management has highlighted order visibility extending several years, reflecting sustained data center expansion. However, the company's Engine and Components segments have contended with persistent weakness in North American medium- and heavy-duty truck markets, and tariffs have acted as a modest drag on margins. Cummins also recorded charges tied to a strategic review of its electrolyzer (hydrogen) business within Accelera, signaling scaled-back investment in zero-emission initiatives where adoption has lagged. These crosscurrents have kept sentiment mixed despite healthy power-generation demand.
ETN Overview and Recent Performance
Eaton Corporation plc is an intelligent power management company based in Dublin, Ireland, serving data center, utility, industrial, commercial, aerospace, and mobility markets. Its core segments include Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility.
Recent market activity has favored ETN, which reported record fourth-quarter results characterized by accelerating orders and continued backlog growth. Electrical Americas orders rose at a double-digit pace, fueled by data center momentum, while Aerospace orders also grew strongly. The company's backlog expanded across its electrical and aerospace businesses, and its book-to-bill ratio (a measure comparing orders received to sales billed) remained above 1.0, indicating robust demand. Eaton has also taken portfolio-shaping actions, completing the acquisition of Ultra PCS to strengthen its aerospace electronics offering and announcing a planned spin-off of its Mobility business, which would sharpen its focus on electrical and aerospace markets. Strong margins, double-digit organic growth, and an expanding backlog have underpinned positive investor sentiment.
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Head-to-Head Comparison
The two companies differ most sharply in business model and growth trajectory. Cummins' revenue is more heavily tied to commercial vehicles and engines, which introduces cyclicality and exposure to freight demand and emissions regulations. Eaton, by contrast, derives the majority of its profit from electrical equipment and aerospace — businesses benefiting directly from electrification, data center buildouts, and defense and commercial aerospace cycles.
On momentum, Eaton has shown more consistent execution, with record margins near 25% and double-digit sales growth, while Cummins' growth has been more modest and tempered by truck-market softness and restructuring charges. On risk, Cummins faces tariff exposure and a still-recovering truck cycle, whereas Eaton carries a richer valuation and execution risk around its planned Mobility spin-off. On sector exposure, both compete for data center demand, but Eaton supplies the electrical infrastructure that distributes power, while Cummins supplies the backup generation that keeps data centers running when the grid fails. Market sentiment has generally rewarded Eaton's steadier, higher-margin electrical franchise, while Cummins offers a lower-valuation, more diversified alternative with meaningful power-generation upside.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, backlog growth, and relative positioning, Tickeron's AI would likely favor ETN in the current environment. Eaton's record results, expanding backlog, above-1.0 book-to-bill ratio, and concentration in high-demand electrical and aerospace end markets suggest more durable near-term momentum and stronger fundamental catalysts. Cummins remains a credible contender given its data center power-generation exposure and comparatively attractive valuation, but its softer truck-related segments and restructuring charges introduce more near-term uncertainty. In probabilistic terms, the AI's signals currently tilt toward Eaton for trend consistency and stability, while acknowledging Cummins as a value-oriented alternative that could re-rate if the North American truck cycle recovers.
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 Hold and ETN is a Hold.
CMI's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for CMI turned positive on September 21, 2026. Looking at past instances where CMI's MACD turned positive, the stock continued to rise in 33 of 48 cases over the following month. The odds of a continued upward trend are 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CMI's RSI Indicator exited the oversold zone, 14 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on CMI as a result. In 55 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
Following a +1.14% 3-day Advance, the price is estimated to grow further. Considering data from situations where CMI advanced for three days, in 218 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
CMI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 39 of 63 cases where CMI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 62%.
The 50-day moving average for CMI moved below the 200-day moving average on September 23, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CMI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
The Aroon Indicator for CMI entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 15 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 27 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.549) is normal, around the industry mean (5.342). P/E Ratio (26.474) is within average values for comparable stocks, (66.065). Projected Growth (PEG Ratio) (1.044) is also within normal values, averaging (1.879). Dividend Yield (0.016) settles around the average of (0.014) among similar stocks. P/S Ratio (2.110) is also within normal values, averaging (186.943).
The Tickeron Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron SMR rating for this company is 44 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. CMI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
ETN sees MACD Histogram just turned negative
ETN saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 08, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 53 instances where the indicator turned negative. In 32 of the 53 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 60%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ETN as a result. In 42 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ETN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
ETN moved above its 50-day moving average on October 09, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ETN crossed bullishly above the 50-day moving average on September 24, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 69%.
Following a +4.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where ETN advanced for three days, in 224 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
ETN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 227 of 335 cases where ETN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 68%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 18 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 24 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. ETN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 47 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.271) is normal, around the industry mean (5.342). P/E Ratio (43.932) is within average values for comparable stocks, (66.065). Projected Growth (PEG Ratio) (2.622) is also within normal values, averaging (1.879). Dividend Yield (0.010) settles around the average of (0.014) among similar stocks. P/S Ratio (5.163) is also within normal values, averaging (186.943).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
CMI | ETN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 22 | 79 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 27 Undervalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 30 | 18 | |
SMR RATING 1..100 | 44 | 47 | |
PRICE GROWTH RATING 1..100 | 59 | 47 | |
P/E GROWTH RATING 1..100 | 15 | 24 | |
SEASONALITY SCORE 1..100 | 75 | 85 |
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 (78) in the Electrical Products industry. This means that CMI’s stock grew somewhat faster than ETN’s over the last 12 months.
ETN's Profit vs Risk Rating (18) in the Electrical Products industry is in the same range as CMI (30) 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 SMR Rating (44) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (47) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
ETN's Price Growth Rating (47) in the Electrical Products industry is in the same range as CMI (59) 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 (15) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (24) 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 67% | N/A |
| Stochastic ODDS (%) | 2 days ago 62% | 2 days ago 69% |
| Momentum ODDS (%) | 2 days ago 65% | 2 days ago 52% |
| MACD ODDS (%) | 2 days ago 69% | 2 days ago 60% |
| TrendWeek ODDS (%) | 2 days ago 60% | 2 days ago 61% |
| TrendMonth ODDS (%) | 2 days ago 61% | 2 days ago 70% |
| Advances ODDS (%) | 2 days ago 65% | 23 days ago 67% |
| Declines ODDS (%) | 21 days ago 56% | 7 days ago 54% |
| BollingerBands ODDS (%) | 2 days ago 59% | 2 days ago 77% |
| Aroon ODDS (%) | 2 days ago 54% | 2 days ago 68% |
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 overvalued. 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 while ETN’s FA Score has 2 green FA rating(s).
- CMI’s FA Score: 3 green, 2 red.
- ETN’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 ETN’s TA Score has 6 bullish TA indicator(s).
- CMI’s TA Score: 5 bullish, 4 bearish.
- ETN’s TA Score: 6 bullish, 3 bearish.
Price Growth
CMI (@Industrial Machinery) experienced а -1.11% price change this week, while ETN (@Industrial Machinery) price change was -3.77% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -7.61%. For the same industry, the average monthly price growth was -8.09%, and the average quarterly price growth was -16.79%.
Reported Earning Dates
CMI is expected to report earnings on Nov 05, 2026.
ETN is expected to report earnings on Nov 03, 2026.
Industries' Descriptions
@Industrial Machinery (-7.61% 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.
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CMI and
Correlation & Price change
A.I.dvisor indicates that over the last year, CMI has been closely correlated with ETN. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if CMI jumps, then ETN could also see price increases.
ETN and
Correlation & Price change
A.I.dvisor indicates that over the last year, ETN has been closely correlated with NPO. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if ETN jumps, then NPO could also see price increases.