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CMI vs ETN
Which Stock Would AI Choose? Cummins Inc. (CMI) vs. Eaton Corporation plc (ETN) Stock Comparison
Key Takeaways
- Both CMI and ETN reported record second-quarter 2026 revenues with raised full-year guidance amid strong demand in data centers and power markets.
- ETN posted stronger year-over-year sales growth (21% vs. 9% for CMI) and significant backlog expansion in its electrical segment.
- CMI benefits from North American trucking recovery and extended order visibility through 2028 in power generation.
- ETN has a larger market capitalization and higher valuation multiples reflecting its broader electrical and power management exposure.
- Recent market activity shows both stocks experiencing volatility, with ETN demonstrating more pronounced recent momentum tied to electrification trends.
- Sector exposure differs: CMI focuses on engines and power solutions, while ETN emphasizes intelligent power management across electrical and aerospace segments.
Introduction
This comparison examines CMI (Cummins Inc.) and ETN (Eaton Corporation plc), two industrials-sector companies positioned in power generation and electrical management. Both have seen heightened investor interest due to data center expansion and energy infrastructure needs. The analysis highlights recent performance, business drivers, and relative positioning to assist traders and investors evaluating exposure within the capital goods space. It draws on verifiable developments from the past several weeks to provide context on momentum and sentiment without forward-looking speculation.
CMI Overview and Recent Performance
Cummins Inc. designs, manufactures, and distributes engines, power generation systems, and related components for on-highway, industrial, and power markets. In recent weeks, the stock has reflected mixed sentiment following its second-quarter 2026 earnings release, which featured record revenues of $9.5 billion (up 9% year over year) and a raised full-year revenue outlook to 10-13% growth. Demand in North American trucking and data-center power generation has supported the order book extending into 2028. Recent market activity shows the share price around $532, with month-to-date declines offset by longer-term gains of approximately 25% over the prior year. Factors influencing performance include regulatory clarity on emissions and capacity investments in power solutions.
ETN Overview and Recent Performance
Eaton Corporation plc provides intelligent power management solutions across electrical, aerospace, and mobility segments. The company reported record second-quarter 2026 sales of $8.5 billion (up 21%, with 14% organic growth) and raised its full-year organic growth guidance to 11-13%. Strong performance in the Electrical Americas segment, driven by data center demand and backlog growth of 43% year over year, has shaped recent sentiment. In recent market activity, the stock has traded near $425, showing resilience and outperformance relative to broader industrials benchmarks in the period following earnings. Portfolio adjustments, including plans to separate the Mobility business, have also factored into positioning amid sustained end-market strength.
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Head-to-Head Comparison
CMI and ETN operate in overlapping industrials themes but differ in business models. CMI centers on engine and power generation equipment with exposure to trucking cycles, while ETN emphasizes electrical components and power management with broader electrification tailwinds. Recent momentum favors ETN on sales growth and backlog metrics, though CMI offers dividend growth consistency. Risk factors include commodity price sensitivity for CMI and integration or separation execution for ETN. Market sentiment reflects shared data center exposure, yet ETN commands a larger market capitalization and elevated valuation multiples. Trade-offs center on growth velocity versus established cash return profiles.
Tickeron AI Verdict
Based on observable factors such as trend consistency, backlog visibility, and relative growth positioning in recent periods, Tickeron’s AI models indicate a probabilistic preference for ETN in the current environment due to stronger organic expansion and electrical segment momentum. However, CMI demonstrates competitive stability in power generation orders. Outcomes remain subject to broader market conditions 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 Buy and ETN is a Buy.
CMI | ETN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 20 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 29 Undervalued | 77 Overvalued | |
PROFIT vs RISK RATING 1..100 | 28 | 18 | |
SMR RATING 1..100 | 44 | 47 | |
PRICE GROWTH RATING 1..100 | 61 | 58 | |
P/E GROWTH RATING 1..100 | 16 | 27 | |
SEASONALITY SCORE 1..100 | n/a | 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 (29) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for ETN (77) 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 (28) 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 (58) in the Electrical Products industry is in the same range as CMI (61) 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 (16) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (27) 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 71% | N/A |
| Stochastic ODDS (%) | 3 days ago 72% | 3 days ago 60% |
| Momentum ODDS (%) | N/A | 3 days ago 78% |
| MACD ODDS (%) | 3 days ago 67% | 3 days ago 68% |
| TrendWeek ODDS (%) | 3 days ago 58% | 3 days ago 70% |
| TrendMonth ODDS (%) | 3 days ago 60% | 3 days ago 70% |
| Advances ODDS (%) | 3 days ago 66% | 3 days ago 67% |
| Declines ODDS (%) | 7 days ago 55% | 9 days ago 54% |
| BollingerBands ODDS (%) | 3 days ago 76% | 3 days ago 74% |
| Aroon ODDS (%) | 3 days ago 49% | 3 days ago 63% |
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 5 bullish TA indicator(s).
- CMI’s TA Score: 5 bullish, 2 bearish.
- ETN’s TA Score: 5 bullish, 4 bearish.
Price Growth
CMI (@Industrial Machinery) experienced а -1.17% price change this week, while ETN (@Industrial Machinery) price change was +10.75% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +3.87%. For the same industry, the average monthly price growth was -6.30%, and the average quarterly price growth was -1.83%.
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 (+3.87% 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.