CMI vs. GWW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CMI and GWW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CMI | GWW |
|---|---|---|
| Company Name | Cummins Inc. | W.W. Grainger, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Trading Companies & Distributors |
| Market Capitalization | 56.05 billion USD | 46.97 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CMI and GWW 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.
Historical Performance at a Glance
| Symbol | CMI | GWW |
|---|---|---|
| 5-Day Price Return | 5.77% | 4.20% |
| 13-Week Price Return | 23.05% | -8.00% |
| 26-Week Price Return | 10.20% | -6.05% |
| 52-Week Price Return | 39.82% | 2.36% |
| Month-to-Date Return | 10.66% | -5.53% |
| Year-to-Date Return | 16.70% | -6.83% |
| 10-Day Avg. Volume | 1.07M | 0.42M |
| 3-Month Avg. Volume | 0.88M | 0.29M |
| 3-Month Volatility | 26.31% | 27.65% |
| Beta | 1.05 | 1.19 |
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.
GWW
54.86%
Trading Companies & Distributors Industry
- Max
- 32.33%
- Q3
- 19.92%
- Median
- 14.05%
- Q1
- 11.46%
- Min
- 0.91%
GWW’s Return on Equity of 54.86% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
GWW
10.99%
Trading Companies & Distributors Industry
- Max
- 17.73%
- Q3
- 10.81%
- Median
- 6.13%
- Q1
- 4.33%
- Min
- 2.09%
A Net Profit Margin of 10.99% places GWW in the upper quartile for the Trading Companies & Distributors industry, signifying strong profitability and more effective cost management than most of its peers.
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.
GWW
15.27%
Trading Companies & Distributors Industry
- Max
- 25.50%
- Q3
- 15.13%
- Median
- 7.46%
- Q1
- 5.44%
- Min
- 3.55%
An Operating Profit Margin of 15.27% places GWW in the upper quartile for the Trading Companies & Distributors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CMI | GWW |
|---|---|---|
| Return on Equity (TTM) | 27.17% | 54.86% |
| Return on Assets (TTM) | 9.02% | 21.63% |
| Net Profit Margin (TTM) | 8.72% | 10.99% |
| Operating Profit Margin (TTM) | 12.28% | 15.27% |
| Gross Profit Margin (TTM) | 25.96% | 39.25% |
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.
GWW
2.82
Trading Companies & Distributors Industry
- Max
- 2.82
- Q3
- 2.13
- Median
- 1.60
- Q1
- 1.43
- Min
- 0.46
GWW’s Current Ratio of 2.82 is exceptionally high, placing it well outside the typical range for the Trading Companies & Distributors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
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.
GWW
0.64
Trading Companies & Distributors Industry
- Max
- 1.88
- Q3
- 1.18
- Median
- 0.74
- Q1
- 0.54
- Min
- 0.00
GWW’s Debt-to-Equity Ratio of 0.64 is typical for the Trading Companies & Distributors 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 (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.
GWW
34.56
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.75
- Q1
- 2.70
- Min
- -1.67
With an Interest Coverage Ratio of 34.56, GWW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | CMI | GWW |
|---|---|---|
| Current Ratio (MRQ) | 1.64 | 2.82 |
| Quick Ratio (MRQ) | 0.87 | 1.53 |
| Debt-to-Equity Ratio (MRQ) | 0.69 | 0.64 |
| Interest Coverage Ratio (TTM) | -- | 34.56 |
Growth
Revenue Growth
EPS Growth
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.
GWW
0.96%
Trading Companies & Distributors Industry
- Max
- 4.99%
- Q3
- 3.04%
- Median
- 1.94%
- Q1
- 1.22%
- Min
- 0.00%
GWW’s Dividend Yield of 0.96% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
GWW
22.89%
Trading Companies & Distributors Industry
- Max
- 95.14%
- Q3
- 62.08%
- Median
- 51.17%
- Q1
- 26.24%
- Min
- 0.00%
GWW’s Dividend Payout Ratio of 22.89% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | CMI | GWW |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 0.96% |
| Dividend Payout Ratio (TTM) | 34.07% | 22.89% |
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.
GWW
23.95
Trading Companies & Distributors Industry
- Max
- 48.55
- Q3
- 26.73
- Median
- 17.17
- Q1
- 10.78
- Min
- 1.62
GWW’s P/E Ratio of 23.95 is within the middle range for the Trading Companies & Distributors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
GWW
2.63
Trading Companies & Distributors Industry
- Max
- 4.88
- Q3
- 2.56
- Median
- 1.02
- Q1
- 0.60
- Min
- 0.29
GWW’s P/S Ratio of 2.63 is in the upper echelon for the Trading Companies & Distributors 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.
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.
GWW
13.60
Trading Companies & Distributors Industry
- Max
- 8.77
- Q3
- 4.33
- Median
- 2.00
- Q1
- 1.11
- Min
- 0.35
At 13.60, GWW’s P/B Ratio is at an extreme premium to the Trading Companies & Distributors 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.
Valuation at a Glance
| Symbol | CMI | GWW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 18.72 | 23.95 |
| Price-to-Sales Ratio (TTM) | 1.63 | 2.63 |
| Price-to-Book Ratio (MRQ) | 3.83 | 13.60 |
| Price-to-Free Cash Flow Ratio (TTM) | 30.30 | 32.51 |