AVAV vs. CMI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVAV and CMI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CMI’s market capitalization of 45.71 billion USD is significantly greater than AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.
With betas of 0.81 for AVAV and 1.03 for CMI, both stocks show similar sensitivity to overall market movements.
| Symbol | AVAV | CMI |
|---|---|---|
| Company Name | AeroVironment, Inc. | Cummins Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Industrial - Machinery |
| CEO | Wahid Nawabi | Jennifer W. Rumsey |
| Price | 246.23 USD | 331.83 USD |
| Market Cap | 11.24 billion USD | 45.71 billion USD |
| Beta | 0.81 | 1.03 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 23, 2007 | October 3, 1947 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVAV and CMI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AVAV
5.06%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
CMI
27.05%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, CMI’s Return on Equity of 27.05% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AVAV
4.16%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.
CMI
12.60%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
CMI’s Return on Invested Capital of 12.60% is in line with the norm for the Industrial - Machinery industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AVAV
5.54%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
CMI
8.20%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
CMI’s Net Profit Margin of 8.20% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AVAV
5.18%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
CMI
11.43%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
CMI’s Operating Profit Margin of 11.43% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AVAV | CMI |
|---|---|---|
| Return on Equity (TTM) | 5.06% | 27.05% |
| Return on Assets (TTM) | 3.89% | 8.54% |
| Return on Invested Capital (TTM) | 4.16% | 12.60% |
| Net Profit Margin (TTM) | 5.54% | 8.20% |
| Operating Profit Margin (TTM) | 5.18% | 11.43% |
| Gross Profit Margin (TTM) | 40.23% | 25.16% |
Financial Strength
Current Ratio
AVAV
3.52
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
CMI
1.34
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
CMI’s Current Ratio of 1.34 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AVAV
0.04
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, AVAV’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
CMI
0.66
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
CMI’s Debt-to-Equity Ratio of 0.66 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AVAV
245.75
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
CMI
10.81
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
CMI’s Interest Coverage Ratio of 10.81 is positioned comfortably within the norm for the Industrial - Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVAV | CMI |
|---|---|---|
| Current Ratio (TTM) | 3.52 | 1.34 |
| Quick Ratio (TTM) | 2.69 | 0.81 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.66 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.22 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.11 | 1.16 |
| Interest Coverage Ratio (TTM) | 245.75 | 10.81 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVAV and CMI. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CMI
2.19%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.19%, CMI offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CMI
35.33%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
CMI’s Dividend Payout Ratio of 35.33% is within the typical range for the Industrial - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVAV | CMI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.19% |
| Dividend Payout Ratio (TTM) | 0.00% | 35.33% |
Valuation
Price-to-Earnings Ratio
AVAV
158.45
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
CMI
16.44
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
In the lower quartile for the Industrial - Machinery industry, CMI’s P/E Ratio of 16.44 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AVAV
4.65
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
CMI
1.63
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
AVAV
14.27
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
AVAV’s P/S Ratio of 14.27 is in the upper echelon for the Aerospace & Defense industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
CMI
1.35
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
In the lower quartile for the Industrial - Machinery industry, CMI’s P/S Ratio of 1.35 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AVAV
7.80
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AVAV’s P/B Ratio of 7.80 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
CMI
4.18
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
CMI’s P/B Ratio of 4.18 is within the conventional range for the Industrial - Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AVAV | CMI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 158.45 | 16.44 |
| Forward PEG Ratio (TTM) | 4.65 | 1.63 |
| Price-to-Sales Ratio (P/S, TTM) | 14.27 | 1.35 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 4.18 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -821.15 | 6530.18 |
| EV-to-EBITDA (TTM) | 188.22 | 10.49 |
| EV-to-Sales (TTM) | 14.26 | 1.52 |