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CMI vs. NXT: Cummins vs. Nextracker Stock Comparison

How do Cummins (CMI) and Nextracker (NXT) 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 Nextracker (NXT) both fall under the Capital Goods industry group, but CMI is classified in Machinery while NXT is classified in Electrical Equipment.

Cummins (CMI) has more than two decades of public-market history since February 21, 1973, whereas Nextracker (NXT) listed on February 9, 2023 and has a much shorter record to draw on.

Company profile comparison for Cummins (CMI) and Nextracker (NXT)
Profile ItemCMINXT
NameCummins Inc.Nextpower Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryElectrical Equipment
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentElectrical Components & Equipment
Market Capitalization61.69 billion USD16.00 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateFebruary 21, 1973February 9, 2023
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CMI
NXT
GSPC
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Cummins (CMI) vs. Nextracker (NXT), 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 Nextracker (NXT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Cummins (CMI) and Nextracker (NXT)
MetricCMINXT
Total Return (1Y)-0.52%0.06%
Total Return (3Y, Annualized)31.79%45.51%
Total Return (5Y, Annualized)17.12%--

Risk Profile

Drawdown History

CMI
NXT
GSPC
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Cummins (CMI) vs. Nextracker (NXT), 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 Nextracker (NXT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cummins (CMI) and Nextracker (NXT)
MetricCMINXT
Volatility (1Y, Annualized)36.83%68.10%
Beta (5Y)1.261.66
Max Drawdown (5Y)-38.12%-51.10%
Avg. Volume (3M)1.14M2.38M

Risk-Adjusted Performance

Risk-Return Positioning

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CMI and NXT 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 Nextracker (NXT)
MetricCMINXT
Sharpe Ratio (1Y)-0.13-0.06
Sortino Ratio (1Y)-0.18-0.09

Profitability

ROE (TTM)

Both Cummins (CMI) at 25.05% and Nextracker (NXT) at 26.46% 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%

NXT

Capital Goods industry group

26.46%

Max
40.55%
NXT
26.46%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Nextracker (NXT) at 15.98% 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%

NXT

Capital Goods industry group

15.98%

Max
27.47%
NXT
15.98%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Nextracker (NXT) at 20.06% operates in the top operating margin quartile, ahead of Cummins (CMI) at 13.95%, which runs around its industry’s norm.

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%

NXT

Capital Goods industry group

20.06%

Max
36.60%
NXT
20.06%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Cummins (CMI) and Nextracker (NXT)
MetricCMINXT
ROE (TTM)25.05%26.46%
ROA (TTM)7.60%10.75%
Net Margin (TTM)9.26%15.98%
Operating Margin (TTM)13.95%20.06%
Gross Margin (TTM)26.32%21.84%

Growth

Revenue Growth

Nextracker (NXT) at 20.28% sits in the top revenue growth quartile, while Cummins (CMI) at -1.27% is in the bottom quartile, showing a clear gap in revenue momentum.

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Cummins (CMI) vs. Nextracker (NXT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Nextracker (NXT) at 10.66% is around its peer norm for EPS growth, while Cummins (CMI) at -27.74% drops into the bottom quartile, signaling weaker earnings momentum.

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Cummins (CMI) vs. Nextracker (NXT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cummins (CMI) and Nextracker (NXT)
MetricCMINXT
Revenue Growth (YoY)-1.27%20.28%
Revenue Growth (3Y CAGR)6.25%23.23%
EPS Growth (YoY)-27.74%10.66%
EPS Growth (3Y CAGR)10.68%476.90%

Financial Strength

Current Ratio (MRQ)

Both Cummins (CMI) at 1.74 and Nextracker (NXT) at 2.23 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

NXT

Capital Goods industry group

2.23

Max
5.22
Q3
2.95
NXT
2.23
Median
2.08
Q1
1.43
Min
0.36
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Nextracker (NXT) at 0.02 keeps leverage in the lower industry quartile, while Cummins (CMI) at 0.52 runs a more typical debt-to-equity mix.

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

NXT

Capital Goods industry group

0.02

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
NXT
0.02
Min
0.00
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Cummins (CMI) vs. Nextracker (NXT): 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 Nextracker (NXT)
MetricCMINXT
Current Ratio (MRQ)1.742.23
Debt / Equity (MRQ)0.520.02
Net Debt / EBITDA0.62-1.30

Dividends

Dividend Yield (TTM)

Nextracker (NXT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Cummins (CMI) reports a yield of 1.83%, ranking against industry peers normally.

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%

NXT

Capital Goods industry group

0.00%

Max
2.66%
Q3
1.14%
Median
0.24%
NXT
0.00%
Q1
0.00%
Min
0.00%
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Nextracker (NXT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Cummins (CMI) reports a payout of 34.21%, ranking against industry peers normally.

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%

NXT

Capital Goods industry group

0.00%

Max
67.39%
Q3
28.02%
Median
6.86%
NXT
0.00%
Q1
0.00%
Min
0.00%
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Cummins (CMI) and Nextracker (NXT)
MetricCMINXT
Dividend Yield (TTM)1.83%0.00%
Dividend Payout Ratio (TTM)34.21%0.00%

Valuation

P/E Ratio (TTM)

Cummins (CMI) at 18.78 sits in the cheaper P/E ratio quartile, while Nextracker (NXT) at 26.42 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

NXT

Capital Goods industry group

26.42

Max
59.38
Q3
35.92
NXT
26.42
Median
25.41
Q1
19.47
Min
3.03
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Cummins (CMI) at 1.72 is priced about in line with its industry on P/S ratio, while Nextracker (NXT) at 4.17 sits in the pricier quartile — NXT costs more per dollar of sales.

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

NXT

Capital Goods industry group

4.17

Max
7.54
NXT
4.17
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Cummins (CMI) vs. Nextracker (NXT): 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 Nextracker (NXT) at 5.98 carries an above-peer premium to book — NXT 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

NXT

Capital Goods industry group

5.98

Max
9.66
NXT
5.98
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
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Cummins (CMI) vs. Nextracker (NXT): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Cummins (CMI) and Nextracker (NXT)
MetricCMINXT
P/E Ratio (TTM)18.7826.42
P/S Ratio (TTM)1.724.17
P/B Ratio (MRQ)4.635.98
Free Cash Flow Yield (TTM)4.06%2.32%