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

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

Company Profile

SymbolCMIRBC
Company NameCummins Inc.RBC Bearings Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryMachinery
Market Capitalization58.51 billion USD12.15 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973August 10, 2005
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CMI and RBC 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. RBC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCMIRBC
5-Day Price Return2.56%3.10%
13-Week Price Return28.83%1.43%
26-Week Price Return31.29%17.43%
52-Week Price Return31.15%30.15%
Month-to-Date Return0.54%0.08%
Year-to-Date Return21.82%30.47%
10-Day Avg. Volume0.96M0.20M
3-Month Avg. Volume0.84M0.18M
3-Month Volatility21.00%21.07%
Beta1.131.75

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.

RBC

8.46%

Machinery Industry

Max
33.68%
Q3
20.05%
Median
12.37%
Q1
8.67%
Min
-7.69%

RBC’s Return on Equity of 8.46% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

CMI vs. RBC: A comparison of their Return on Equity (TTM) against the Machinery industry benchmark.

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.

RBC

15.20%

Machinery Industry

Max
19.72%
Q3
11.07%
Median
7.62%
Q1
5.05%
Min
-1.52%

A Net Profit Margin of 15.20% places RBC in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

CMI vs. RBC: A comparison of their Net Profit Margin (TTM) against the Machinery industry benchmark.

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.

RBC

22.18%

Machinery Industry

Max
26.63%
Q3
15.99%
Median
11.27%
Q1
7.72%
Min
-0.51%

An Operating Profit Margin of 22.18% places RBC in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CMI vs. RBC: A comparison of their Operating Profit Margin (TTM) against the Machinery industry benchmark.

Profitability at a Glance

SymbolCMIRBC
Return on Equity (TTM)27.17%8.46%
Return on Assets (TTM)9.02%5.37%
Net Profit Margin (TTM)8.72%15.20%
Operating Profit Margin (TTM)12.28%22.18%
Gross Profit Margin (TTM)25.96%44.26%

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.

RBC

3.33

Machinery Industry

Max
3.13
Q3
2.12
Median
1.72
Q1
1.34
Min
0.77

RBC’s Current Ratio of 3.33 is exceptionally high, placing it well outside the typical range for the Machinery 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.

CMI vs. RBC: A comparison of their Current Ratio (MRQ) against the Machinery industry benchmark.

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.

RBC

0.30

Machinery Industry

Max
1.56
Q3
0.79
Median
0.44
Q1
0.27
Min
0.00

RBC’s Debt-to-Equity Ratio of 0.30 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.

CMI vs. RBC: A comparison of their Debt-to-Equity Ratio (MRQ) against the Machinery industry benchmark.

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.

RBC

6.22

Machinery Industry

Max
81.58
Q3
37.68
Median
13.76
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, RBC’s Interest Coverage Ratio of 6.22 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

CMI vs. RBC: A comparison of their Interest Coverage Ratio (TTM) against the Machinery industry benchmark.

Financial Strength at a Glance

SymbolCMIRBC
Current Ratio (MRQ)1.643.33
Quick Ratio (MRQ)0.871.26
Debt-to-Equity Ratio (MRQ)0.690.30
Interest Coverage Ratio (TTM)--6.22

Growth

Revenue Growth

CMI vs. RBC: 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. RBC: 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

1.73%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

CMI’s Dividend Yield of 1.73% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

RBC

0.09%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

RBC’s Dividend Yield of 0.09% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

CMI vs. RBC: A comparison of their Dividend Yield (TTM) against the Machinery industry benchmark.

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.

RBC

9.74%

Machinery Industry

Max
198.34%
Q3
101.42%
Median
62.79%
Q1
29.85%
Min
0.00%

RBC’s Dividend Payout Ratio of 9.74% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

CMI vs. RBC: A comparison of their Dividend Payout Ratio (TTM) against the Machinery industry benchmark.

Dividend at a Glance

SymbolCMIRBC
Dividend Yield (TTM)1.73%0.09%
Dividend Payout Ratio (TTM)34.07%9.74%

Valuation

Price-to-Earnings Ratio (TTM)

CMI

19.75

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

CMI’s P/E Ratio of 19.75 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.

RBC

48.21

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

At 48.21, RBC’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Machinery industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

CMI vs. RBC: A comparison of their Price-to-Earnings Ratio (TTM) against the Machinery industry benchmark.

Price-to-Sales Ratio (TTM)

CMI

1.72

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

CMI’s P/S Ratio of 1.72 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.

RBC

7.33

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

With a P/S Ratio of 7.33, RBC trades at a valuation that eclipses even the highest in the Machinery industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CMI vs. RBC: A comparison of their Price-to-Sales Ratio (TTM) against the Machinery industry benchmark.

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.

RBC

3.89

Machinery Industry

Max
7.29
Q3
4.06
Median
2.67
Q1
1.54
Min
0.52

RBC’s P/B Ratio of 3.89 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.

CMI vs. RBC: A comparison of their Price-to-Book Ratio (MRQ) against the Machinery industry benchmark.

Valuation at a Glance

SymbolCMIRBC
Price-to-Earnings Ratio (TTM)19.7548.21
Price-to-Sales Ratio (TTM)1.727.33
Price-to-Book Ratio (MRQ)3.833.89
Price-to-Free Cash Flow Ratio (TTM)31.9647.02