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

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

Company Profile

SymbolCMIRKLB
Company NameCummins Inc.Rocket Lab Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryAerospace & Defense
Market Capitalization65.22 billion USD21.53 billion USD
ExchangeNYSENasdaqCM
Listing DateFebruary 21, 1973November 24, 2020
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolCMIRKLB
5-Day Price Return0.56%-13.31%
13-Week Price Return18.01%-4.94%
26-Week Price Return38.18%53.02%
52-Week Price Return28.56%92.59%
Month-to-Date Return6.29%-37.31%
Year-to-Date Return33.45%55.01%
10-Day Avg. Volume1.00M22.57M
3-Month Avg. Volume0.91M22.10M
3-Month Volatility28.56%81.32%
Beta1.092.36

Profitability

Return on Equity (TTM)

CMI

23.69%

Machinery Industry

Max
30.85%
Q3
19.99%
Median
12.37%
Q1
8.44%
Min
-7.69%

In the upper quartile for the Machinery industry, CMI’s Return on Equity of 23.69% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

RKLB

-28.40%

Aerospace & Defense Industry

Max
43.89%
Q3
23.64%
Median
12.98%
Q1
8.07%
Min
-2.55%

RKLB has a negative Return on Equity of -28.40%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

CMI vs. RKLB: A comparison of their Return on Equity (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

CMI

7.94%

Machinery Industry

Max
19.28%
Q3
10.99%
Median
7.89%
Q1
5.16%
Min
-1.46%

CMI’s Net Profit Margin of 7.94% 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.

RKLB

-35.64%

Aerospace & Defense Industry

Max
14.96%
Q3
9.50%
Median
6.59%
Q1
4.45%
Min
1.01%

RKLB has a negative Net Profit Margin of -35.64%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

CMI vs. RKLB: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

CMI

11.74%

Machinery Industry

Max
27.20%
Q3
15.91%
Median
11.33%
Q1
7.73%
Min
0.23%

CMI’s Operating Profit Margin of 11.74% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

RKLB

-41.36%

Aerospace & Defense Industry

Max
17.97%
Q3
12.09%
Median
9.29%
Q1
6.41%
Min
-1.59%

RKLB has a negative Operating Profit Margin of -41.36%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CMI vs. RKLB: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolCMIRKLB
Return on Equity (TTM)23.69%-28.40%
Return on Assets (TTM)8.09%-12.72%
Net Profit Margin (TTM)7.94%-35.64%
Operating Profit Margin (TTM)11.74%-41.36%
Gross Profit Margin (TTM)25.94%31.70%

Financial Strength

Current Ratio (MRQ)

CMI

1.77

Machinery Industry

Max
3.27
Q3
2.16
Median
1.75
Q1
1.32
Min
0.70

CMI’s Current Ratio of 1.77 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

RKLB

3.18

Aerospace & Defense Industry

Max
3.37
Q3
2.01
Median
1.22
Q1
1.07
Min
0.68

RKLB’s Current Ratio of 3.18 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.

CMI vs. RKLB: A comparison of their Current Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CMI

0.63

Machinery Industry

Max
1.49
Q3
0.75
Median
0.45
Q1
0.23
Min
0.00

CMI’s Debt-to-Equity Ratio of 0.63 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.

RKLB

0.34

Aerospace & Defense Industry

Max
1.89
Q3
0.99
Median
0.63
Q1
0.39
Min
0.03

Falling into the lower quartile for the Aerospace & Defense industry, RKLB’s Debt-to-Equity Ratio of 0.34 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CMI vs. RKLB: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

CMI

--

Machinery Industry

Max
67.55
Q3
36.46
Median
13.55
Q1
7.73
Min
-1.43

Interest Coverage Ratio data for CMI is currently unavailable.

RKLB

-45.87

Aerospace & Defense Industry

Max
29.86
Q3
19.49
Median
7.09
Q1
2.62
Min
-7.63

RKLB has a negative Interest Coverage Ratio of -45.87. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

CMI vs. RKLB: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolCMIRKLB
Current Ratio (MRQ)1.773.18
Quick Ratio (MRQ)0.932.69
Debt-to-Equity Ratio (MRQ)0.630.34
Interest Coverage Ratio (TTM)---45.87

Growth

Revenue Growth

CMI vs. RKLB: 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. RKLB: 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

1.60%

Machinery Industry

Max
4.98%
Q3
2.83%
Median
1.89%
Q1
1.17%
Min
0.00%

CMI’s Dividend Yield of 1.60% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

RKLB

0.00%

Aerospace & Defense Industry

Max
2.87%
Q3
1.46%
Median
0.58%
Q1
0.10%
Min
0.00%

RKLB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CMI vs. RKLB: A comparison of their Dividend Yield (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

CMI

38.53%

Machinery Industry

Max
209.29%
Q3
102.41%
Median
62.34%
Q1
29.36%
Min
0.00%

CMI’s Dividend Payout Ratio of 38.53% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RKLB

0.00%

Aerospace & Defense Industry

Max
110.40%
Q3
51.46%
Median
20.20%
Q1
4.21%
Min
0.00%

RKLB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CMI vs. RKLB: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolCMIRKLB
Dividend Yield (TTM)1.60%0.00%
Dividend Payout Ratio (TTM)38.53%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

CMI

24.07

Machinery Industry

Max
46.28
Q3
29.52
Median
24.18
Q1
16.92
Min
7.99

CMI’s P/E Ratio of 24.07 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.

RKLB

--

Aerospace & Defense Industry

Max
94.22
Q3
53.31
Median
32.27
Q1
24.64
Min
14.57

P/E Ratio data for RKLB is currently unavailable.

CMI vs. RKLB: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

CMI

1.91

Machinery Industry

Max
5.25
Q3
2.82
Median
1.74
Q1
0.99
Min
0.27

CMI’s P/S Ratio of 1.91 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.

RKLB

38.82

Aerospace & Defense Industry

Max
7.20
Q3
3.95
Median
2.35
Q1
1.71
Min
0.32

With a P/S Ratio of 38.82, RKLB 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.

CMI vs. RKLB: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

CMI

4.82

Machinery Industry

Max
7.18
Q3
4.18
Median
2.71
Q1
1.54
Min
0.52

CMI’s P/B Ratio of 4.82 is in the upper tier for the Machinery 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.

RKLB

18.10

Aerospace & Defense Industry

Max
18.61
Q3
9.58
Median
5.45
Q1
3.11
Min
0.94

RKLB’s P/B Ratio of 18.10 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.

CMI vs. RKLB: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolCMIRKLB
Price-to-Earnings Ratio (TTM)24.07--
Price-to-Sales Ratio (TTM)1.9138.82
Price-to-Book Ratio (MRQ)4.8218.10
Price-to-Free Cash Flow Ratio (TTM)26.28--