CMI vs. HWM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CMI and HWM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CMI | HWM |
|---|---|---|
| Company Name | Cummins Inc. | Howmet Aerospace Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Aerospace & Defense |
| Market Capitalization | 59.63 billion USD | 76.29 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | November 1, 2016 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CMI and HWM 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 | HWM |
|---|---|---|
| 5-Day Price Return | 3.19% | -1.39% |
| 13-Week Price Return | 30.43% | 4.52% |
| 26-Week Price Return | 38.08% | 45.88% |
| 52-Week Price Return | 33.15% | 86.84% |
| Month-to-Date Return | 2.47% | -3.56% |
| Year-to-Date Return | 24.15% | 73.04% |
| 10-Day Avg. Volume | 0.85M | 2.07M |
| 3-Month Avg. Volume | 0.84M | 2.86M |
| 3-Month Volatility | 21.15% | 26.35% |
| Beta | 1.12 | 1.34 |
Profitability
Return on Equity (TTM)
CMI
27.17%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
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.
HWM
29.58%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- Min
- -6.24%
In the upper quartile for the Aerospace & Defense industry, HWM’s Return on Equity of 29.58% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CMI
8.72%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
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.
HWM
18.09%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
HWM’s Net Profit Margin of 18.09% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
CMI
12.28%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
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.
HWM
24.28%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
HWM’s Operating Profit Margin of 24.28% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | CMI | HWM |
|---|---|---|
| Return on Equity (TTM) | 27.17% | 29.58% |
| Return on Assets (TTM) | 9.02% | 13.03% |
| Net Profit Margin (TTM) | 8.72% | 18.09% |
| Operating Profit Margin (TTM) | 12.28% | 24.28% |
| Gross Profit Margin (TTM) | 25.96% | 32.69% |
Financial Strength
Current Ratio (MRQ)
CMI
1.64
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
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.
HWM
2.31
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
HWM’s Current Ratio of 2.31 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.
Debt-to-Equity Ratio (MRQ)
CMI
0.69
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- 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.
HWM
0.65
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
HWM’s Debt-to-Equity Ratio of 0.65 is typical for the Aerospace & Defense 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
- 81.58
- Q3
- 37.68
- Median
- 13.76
- Q1
- 7.97
- Min
- -1.43
Interest Coverage Ratio data for CMI is currently unavailable.
HWM
7.92
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- Min
- -7.63
HWM’s Interest Coverage Ratio of 7.92 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CMI | HWM |
|---|---|---|
| Current Ratio (MRQ) | 1.64 | 2.31 |
| Quick Ratio (MRQ) | 0.87 | 0.91 |
| Debt-to-Equity Ratio (MRQ) | 0.69 | 0.65 |
| Interest Coverage Ratio (TTM) | -- | 7.92 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CMI
1.68%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
CMI’s Dividend Yield of 1.68% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
HWM
0.20%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
HWM’s Dividend Yield of 0.20% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CMI
34.07%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- 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.
HWM
10.74%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- Min
- 0.00%
HWM’s Dividend Payout Ratio of 10.74% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CMI | HWM |
|---|---|---|
| Dividend Yield (TTM) | 1.68% | 0.20% |
| Dividend Payout Ratio (TTM) | 34.07% | 10.74% |
Valuation
Price-to-Earnings Ratio (TTM)
CMI
20.33
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
CMI’s P/E Ratio of 20.33 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.
HWM
54.68
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
HWM’s P/E Ratio of 54.68 is within the middle range for the Aerospace & Defense 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
1.77
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
CMI’s P/S Ratio of 1.77 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.
HWM
9.89
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
With a P/S Ratio of 9.89, HWM trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
CMI
3.83
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
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.
HWM
14.90
Aerospace & Defense Industry
- Max
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
HWM’s P/B Ratio of 14.90 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | CMI | HWM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.33 | 54.68 |
| Price-to-Sales Ratio (TTM) | 1.77 | 9.89 |
| Price-to-Book Ratio (MRQ) | 3.83 | 14.90 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.91 | 75.04 |