CMI vs. LECO: Cummins vs. Lincoln Electric Stock Comparison

November 11, 2026

How do Cummins (CMI) and Lincoln Electric (LECO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Cummins (CMI) and Lincoln Electric (LECO) both belong to the Machinery industry, though CMI is classified under Construction Machinery & Heavy Transportation Equipment while LECO falls under Industrial Machinery & Supplies & Components.

Company profile comparison for Cummins (CMI) and Lincoln Electric (LECO)
Profile Item	CMI	LECO
Name	Cummins Inc.	Lincoln Electric Holdings, Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Machinery
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment	Industrial Machinery & Supplies & Components
Market Capitalization	61.69 billion USD	14.91 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	February 21, 1973	April 7, 1994
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CMI

LECO

GSPC

Cummins (CMI) vs. Lincoln Electric (LECO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cummins (CMI) and Lincoln Electric (LECO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cummins (CMI) and Lincoln Electric (LECO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
Total Return (1Y)	-0.52%	27.30%
Total Return (3Y, Annualized)	31.79%	17.31%
Total Return (5Y, Annualized)	17.12%	16.33%

Risk Profile

Drawdown History

CMI

LECO

GSPC

Cummins (CMI) vs. Lincoln Electric (LECO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cummins (CMI) and Lincoln Electric (LECO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
Volatility (1Y, Annualized)	36.83%	31.13%
Beta (5Y)	1.26	1.17
Max Drawdown (5Y)	-38.12%	-34.29%
Avg. Volume (3M)	1.14M	409.99K

Risk-Adjusted Performance

Risk-Return Positioning

CMI and LECO are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
Sharpe Ratio (1Y)	-0.13	0.74
Sortino Ratio (1Y)	-0.18	1.11

Profitability

ROE (TTM)

Both Cummins (CMI) at 25.05% and Lincoln Electric (LECO) at 38.75% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

CMI

Capital Goods industry group

25.05%

Max: 40.55%
CMI: 25.05%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

LECO

Capital Goods industry group

38.75%

Max: 40.55%
LECO: 38.75%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Lincoln Electric (LECO) at 12.40% retains a top-quartile share of revenue as profit, ahead of Cummins (CMI) at 9.26%, which keeps about the industry-typical share.

CMI

Capital Goods industry group

9.26%

Max: 27.47%
Q3: 12.10%
CMI: 9.26%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

LECO

Capital Goods industry group

12.40%

Max: 27.47%
LECO: 12.40%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Cummins (CMI) at 13.95% and Lincoln Electric (LECO) at 18.29% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

CMI

Capital Goods industry group

13.95%

Max: 36.60%
Q3: 18.33%
CMI: 13.95%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

LECO

Capital Goods industry group

18.29%

Max: 36.60%
Q3: 18.33%
LECO: 18.29%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
ROE (TTM)	25.05%	38.75%
ROA (TTM)	7.60%	13.32%
Net Margin (TTM)	9.26%	12.40%
Operating Margin (TTM)	13.95%	18.29%
Gross Margin (TTM)	26.32%	35.54%

Growth

Revenue Growth

Lincoln Electric (LECO) at 5.60% is around its peer norm for revenue growth, while Cummins (CMI) at -1.27% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Lincoln Electric (LECO) at 14.36% is around its peer norm for EPS growth, while Cummins (CMI) at -27.74% drops into the bottom quartile, signaling weaker earnings momentum.

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
Revenue Growth (YoY)	-1.27%	5.60%
Revenue Growth (3Y CAGR)	6.25%	4.02%
EPS Growth (YoY)	-27.74%	14.36%
EPS Growth (3Y CAGR)	10.68%	5.05%

Financial Strength

Current Ratio (MRQ)

Both Cummins (CMI) at 1.74 and Lincoln Electric (LECO) at 1.91 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

CMI

Capital Goods industry group

1.74

Max: 5.22
Q3: 2.95
Median: 2.08
CMI: 1.74
Q1: 1.43
Min: 0.36

LECO

Capital Goods industry group

1.91

Max: 5.22
Q3: 2.95
Median: 2.08
LECO: 1.91
Q1: 1.43
Min: 0.36

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Both Cummins (CMI) at 0.52 and Lincoln Electric (LECO) at 0.78 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

CMI

Capital Goods industry group

0.52

Max: 2.33
Q3: 1.12
Median: 0.60
CMI: 0.52
Q1: 0.29
Min: 0.00

LECO

Capital Goods industry group

0.78

Max: 2.33
Q3: 1.12
LECO: 0.78
Median: 0.60
Q1: 0.29
Min: 0.00

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
Current Ratio (MRQ)	1.74	1.91
Debt / Equity (MRQ)	0.52	0.78
Net Debt / EBITDA	0.62	1.00

Dividends

Dividend Yield (TTM)

Both Cummins (CMI) at 1.83% and Lincoln Electric (LECO) at 1.16% offer top-quartile dividend income relative to share price within their industries.

CMI

Capital Goods industry group

1.83%

Max: 2.66%
CMI: 1.83%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

LECO

Capital Goods industry group

1.16%

Max: 2.66%
LECO: 1.16%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Cummins (CMI) at 34.21% and Lincoln Electric (LECO) at 30.30% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

CMI

Capital Goods industry group

34.21%

Max: 67.39%
CMI: 34.21%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

LECO

Capital Goods industry group

30.30%

Max: 67.39%
LECO: 30.30%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
Dividend Yield (TTM)	1.83%	1.16%
Dividend Payout Ratio (TTM)	34.21%	30.30%

Valuation

P/E Ratio (TTM)

Cummins (CMI) at 18.78 sits in the cheaper P/E ratio quartile, while Lincoln Electric (LECO) at 26.40 is closer to its industry’s usual earnings multiple — a discount for CMI, though growth and earnings durability still matter.

CMI

Capital Goods industry group

18.78

Max: 59.38
Q3: 35.92
Median: 25.41
Q1: 19.47
CMI: 18.78
Min: 3.03

LECO

Capital Goods industry group

26.40

Max: 59.38
Q3: 35.92
LECO: 26.40
Median: 25.41
Q1: 19.47
Min: 3.03

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Cummins (CMI) at 1.72 and Lincoln Electric (LECO) at 3.21 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

CMI

Capital Goods industry group

1.72

Max: 7.54
Q3: 3.76
Median: 2.15
CMI: 1.72
Q1: 1.03
Min: 0.03

LECO

Capital Goods industry group

3.21

Max: 7.54
Q3: 3.76
LECO: 3.21
Median: 2.15
Q1: 1.03
Min: 0.03

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Cummins (CMI) at 4.63 is valued about in line with its industry on P/B ratio, while Lincoln Electric (LECO) at 9.59 carries an above-peer premium to book — LECO is pricier on assets.

CMI

Capital Goods industry group

4.63

Max: 9.66
Q3: 5.00
CMI: 4.63
Median: 3.12
Q1: 1.81
Min: -1.08

LECO

Capital Goods industry group

9.59

Max: 9.66
LECO: 9.59
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

Cummins (CMI) vs. Lincoln Electric (LECO): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Cummins (CMI) and Lincoln Electric (LECO)
Metric	CMI	LECO
P/E Ratio (TTM)	18.78	26.40
P/S Ratio (TTM)	1.72	3.21
P/B Ratio (MRQ)	4.63	9.59
Free Cash Flow Yield (TTM)	4.06%	2.68%