CMI vs. SARO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CMI and SARO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CMI | SARO |
|---|---|---|
| Company Name | Cummins Inc. | StandardAero, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Aerospace & Defense |
| Market Capitalization | 63.62 billion USD | 8.46 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | October 2, 2024 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CMI and SARO 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 | SARO |
|---|---|---|
| 5-Day Price Return | -4.49% | -6.97% |
| 13-Week Price Return | 15.82% | -3.50% |
| 26-Week Price Return | 38.27% | -14.17% |
| 52-Week Price Return | 26.28% | -11.87% |
| Month-to-Date Return | 5.70% | -11.32% |
| Year-to-Date Return | 32.71% | 3.47% |
| 10-Day Avg. Volume | 1.00M | 1.96M |
| 3-Month Avg. Volume | 0.90M | 1.74M |
| 3-Month Volatility | 28.11% | 28.80% |
| Beta | 1.12 | 1.26 |
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.
SARO
6.27%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 23.64%
- Median
- 12.98%
- Q1
- 8.07%
- Min
- -2.55%
SARO’s Return on Equity of 6.27% is in the lower quartile for the Aerospace & Defense industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
SARO
2.37%
Aerospace & Defense Industry
- Max
- 14.96%
- Q3
- 9.50%
- Median
- 6.59%
- Q1
- 4.45%
- Min
- 1.01%
Falling into the lower quartile for the Aerospace & Defense industry, SARO’s Net Profit Margin of 2.37% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
SARO
7.59%
Aerospace & Defense Industry
- Max
- 17.97%
- Q3
- 12.09%
- Median
- 9.29%
- Q1
- 6.41%
- Min
- -1.59%
SARO’s Operating Profit Margin of 7.59% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CMI | SARO |
|---|---|---|
| Return on Equity (TTM) | 23.69% | 6.27% |
| Return on Assets (TTM) | 8.09% | 2.11% |
| Net Profit Margin (TTM) | 7.94% | 2.37% |
| Operating Profit Margin (TTM) | 11.74% | 7.59% |
| Gross Profit Margin (TTM) | 25.94% | 14.90% |
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.
SARO
2.15
Aerospace & Defense Industry
- Max
- 3.37
- Q3
- 2.01
- Median
- 1.22
- Q1
- 1.07
- Min
- 0.68
SARO’s Current Ratio of 2.15 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
0.63
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.
SARO
0.92
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.99
- Median
- 0.63
- Q1
- 0.39
- Min
- 0.03
SARO’s Debt-to-Equity Ratio of 0.92 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
- 67.55
- Q3
- 36.46
- Median
- 13.55
- Q1
- 7.73
- Min
- -1.43
Interest Coverage Ratio data for CMI is currently unavailable.
SARO
1.29
Aerospace & Defense Industry
- Max
- 29.86
- Q3
- 19.49
- Median
- 7.09
- Q1
- 2.62
- Min
- -7.63
In the lower quartile for the Aerospace & Defense industry, SARO’s Interest Coverage Ratio of 1.29 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | CMI | SARO |
|---|---|---|
| Current Ratio (MRQ) | 1.77 | 2.15 |
| Quick Ratio (MRQ) | 0.93 | 1.45 |
| Debt-to-Equity Ratio (MRQ) | 0.63 | 0.92 |
| Interest Coverage Ratio (TTM) | -- | 1.29 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CMI
1.61%
Machinery Industry
- Max
- 4.98%
- Q3
- 2.83%
- Median
- 1.89%
- Q1
- 1.17%
- Min
- 0.00%
CMI’s Dividend Yield of 1.61% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
SARO
0.00%
Aerospace & Defense Industry
- Max
- 2.87%
- Q3
- 1.46%
- Median
- 0.58%
- Q1
- 0.10%
- Min
- 0.00%
SARO 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.
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.
SARO
0.00%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 51.46%
- Median
- 20.20%
- Q1
- 4.21%
- Min
- 0.00%
SARO 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.
Dividend at a Glance
| Symbol | CMI | SARO |
|---|---|---|
| Dividend Yield (TTM) | 1.61% | 0.00% |
| Dividend Payout Ratio (TTM) | 38.53% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CMI
23.93
Machinery Industry
- Max
- 46.28
- Q3
- 29.52
- Median
- 24.18
- Q1
- 16.92
- Min
- 7.99
CMI’s P/E Ratio of 23.93 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.
SARO
62.00
Aerospace & Defense Industry
- Max
- 94.22
- Q3
- 53.31
- Median
- 32.27
- Q1
- 24.64
- Min
- 14.57
A P/E Ratio of 62.00 places SARO in the upper quartile for the Aerospace & Defense industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
CMI
1.90
Machinery Industry
- Max
- 5.25
- Q3
- 2.82
- Median
- 1.74
- Q1
- 0.99
- Min
- 0.27
CMI’s P/S Ratio of 1.90 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.
SARO
1.47
Aerospace & Defense Industry
- Max
- 7.20
- Q3
- 3.95
- Median
- 2.35
- Q1
- 1.71
- Min
- 0.32
In the lower quartile for the Aerospace & Defense industry, SARO’s P/S Ratio of 1.47 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
SARO
4.21
Aerospace & Defense Industry
- Max
- 18.61
- Q3
- 9.58
- Median
- 5.45
- Q1
- 3.11
- Min
- 0.94
SARO’s P/B Ratio of 4.21 is within the conventional range for the Aerospace & Defense 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.
Valuation at a Glance
| Symbol | CMI | SARO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.93 | 62.00 |
| Price-to-Sales Ratio (TTM) | 1.90 | 1.47 |
| Price-to-Book Ratio (MRQ) | 4.82 | 4.21 |
| Price-to-Free Cash Flow Ratio (TTM) | 26.14 | -- |