Seek Returns logo

CMI vs. EME: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at CMI and EME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCMIEME
Company NameCummins Inc.EMCOR Group, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryConstruction & Engineering
Market Capitalization56.05 billion USD27.61 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973January 10, 1995
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CMI and EME 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.

CMI vs. EME: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCMIEME
5-Day Price Return5.77%-0.13%
13-Week Price Return23.05%34.86%
26-Week Price Return10.20%32.01%
52-Week Price Return39.82%73.33%
Month-to-Date Return10.66%-1.72%
Year-to-Date Return16.70%35.87%
10-Day Avg. Volume1.07M0.38M
3-Month Avg. Volume0.88M0.47M
3-Month Volatility26.31%29.57%
Beta1.051.27

Profitability

Return on Equity (TTM)

CMI

27.17%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

In the upper quartile for the Machinery industry, CMI’s Return on Equity of 27.17% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

EME

37.80%

Construction & Engineering Industry

Max
29.61%
Q3
17.18%
Median
10.42%
Q1
8.10%
Min
-0.10%

EME’s Return on Equity of 37.80% is exceptionally high, placing it well beyond the typical range for the Construction & Engineering industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CMI vs. EME: A comparison of their Return on Equity (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Net Profit Margin (TTM)

CMI

8.72%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

CMI’s Net Profit Margin of 8.72% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

EME

7.07%

Construction & Engineering Industry

Max
11.14%
Q3
6.17%
Median
3.85%
Q1
2.40%
Min
-0.05%

A Net Profit Margin of 7.07% places EME in the upper quartile for the Construction & Engineering industry, signifying strong profitability and more effective cost management than most of its peers.

CMI vs. EME: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Operating Profit Margin (TTM)

CMI

12.28%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

CMI’s Operating Profit Margin of 12.28% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

EME

9.50%

Construction & Engineering Industry

Max
17.56%
Q3
9.36%
Median
5.46%
Q1
3.47%
Min
-1.93%

An Operating Profit Margin of 9.50% places EME in the upper quartile for the Construction & Engineering industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CMI vs. EME: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Profitability at a Glance

SymbolCMIEME
Return on Equity (TTM)27.17%37.80%
Return on Assets (TTM)9.02%14.03%
Net Profit Margin (TTM)8.72%7.07%
Operating Profit Margin (TTM)12.28%9.50%
Gross Profit Margin (TTM)25.96%19.49%

Financial Strength

Current Ratio (MRQ)

CMI

1.64

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

CMI’s Current Ratio of 1.64 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

EME

1.18

Construction & Engineering Industry

Max
1.98
Q3
1.53
Median
1.24
Q1
1.05
Min
0.66

EME’s Current Ratio of 1.18 aligns with the median group of the Construction & Engineering industry, indicating that its short-term liquidity is in line with its sector peers.

CMI vs. EME: A comparison of their Current Ratio (MRQ) against their respective Machinery and Construction & Engineering industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CMI

0.69

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

CMI’s Debt-to-Equity Ratio of 0.69 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

EME

0.08

Construction & Engineering Industry

Max
2.49
Q3
1.19
Median
0.63
Q1
0.29
Min
0.00

Falling into the lower quartile for the Construction & Engineering industry, EME’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CMI vs. EME: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Construction & Engineering industry benchmarks.

Interest Coverage Ratio (TTM)

CMI

--

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

Interest Coverage Ratio data for CMI is currently unavailable.

EME

490.27

Construction & Engineering Industry

Max
23.59
Q3
14.49
Median
8.20
Q1
5.26
Min
-6.49

With an Interest Coverage Ratio of 490.27, EME demonstrates a superior capacity to service its debt, placing it well above the typical range for the Construction & Engineering industry. This stems from either robust earnings or a conservative debt load.

CMI vs. EME: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Financial Strength at a Glance

SymbolCMIEME
Current Ratio (MRQ)1.641.18
Quick Ratio (MRQ)0.871.13
Debt-to-Equity Ratio (MRQ)0.690.08
Interest Coverage Ratio (TTM)--490.27

Growth

Revenue Growth

CMI vs. EME: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CMI vs. EME: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CMI

1.82%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

CMI’s Dividend Yield of 1.82% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

EME

0.17%

Construction & Engineering Industry

Max
6.28%
Q3
3.25%
Median
2.02%
Q1
0.23%
Min
0.00%

EME’s Dividend Yield of 0.17% is in the lower quartile for the Construction & Engineering industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

CMI vs. EME: A comparison of their Dividend Yield (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Dividend Payout Ratio (TTM)

CMI

34.07%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

CMI’s Dividend Payout Ratio of 34.07% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

EME

4.14%

Construction & Engineering Industry

Max
139.17%
Q3
69.47%
Median
40.99%
Q1
10.51%
Min
0.00%

EME’s Dividend Payout Ratio of 4.14% is in the lower quartile for the Construction & Engineering industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

CMI vs. EME: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Dividend at a Glance

SymbolCMIEME
Dividend Yield (TTM)1.82%0.17%
Dividend Payout Ratio (TTM)34.07%4.14%

Valuation

Price-to-Earnings Ratio (TTM)

CMI

18.72

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

CMI’s P/E Ratio of 18.72 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

EME

24.61

Construction & Engineering Industry

Max
36.96
Q3
24.81
Median
15.45
Q1
12.51
Min
2.74

EME’s P/E Ratio of 24.61 is within the middle range for the Construction & Engineering industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CMI vs. EME: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Price-to-Sales Ratio (TTM)

CMI

1.63

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

CMI’s P/S Ratio of 1.63 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

EME

1.74

Construction & Engineering Industry

Max
3.22
Q3
1.63
Median
0.61
Q1
0.48
Min
0.11

EME’s P/S Ratio of 1.74 is in the upper echelon for the Construction & Engineering 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 vs. EME: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Construction & Engineering industry benchmarks.

Price-to-Book Ratio (MRQ)

CMI

3.83

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

CMI’s P/B Ratio of 3.83 is within the conventional range for the 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.

EME

7.85

Construction & Engineering Industry

Max
5.74
Q3
3.33
Median
1.49
Q1
1.20
Min
0.23

At 7.85, EME’s P/B Ratio is at an extreme premium to the Construction & Engineering industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CMI vs. EME: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Construction & Engineering industry benchmarks.

Valuation at a Glance

SymbolCMIEME
Price-to-Earnings Ratio (TTM)18.7224.61
Price-to-Sales Ratio (TTM)1.631.74
Price-to-Book Ratio (MRQ)3.837.85
Price-to-Free Cash Flow Ratio (TTM)30.3022.51