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

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

Company Profile

SymbolCMISWK
Company NameCummins Inc.Stanley Black & Decker, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryMachinery
Market Capitalization56.05 billion USD11.76 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolCMISWK
5-Day Price Return5.77%10.53%
13-Week Price Return23.05%4.76%
26-Week Price Return10.20%-11.56%
52-Week Price Return39.82%-18.30%
Month-to-Date Return10.66%12.31%
Year-to-Date Return16.70%-5.37%
10-Day Avg. Volume1.07M1.86M
3-Month Avg. Volume0.88M2.81M
3-Month Volatility26.31%47.04%
Beta1.051.20

Profitability

Return on Equity (TTM)

CMI

27.17%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

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.

SWK

6.59%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

SWK’s Return on Equity of 6.59% 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. SWK: A comparison of their Return on Equity (TTM) against the Machinery industry benchmark.

Net Profit Margin (TTM)

CMI

8.72%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

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.

SWK

3.85%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

Falling into the lower quartile for the Machinery industry, SWK’s Net Profit Margin of 3.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

CMI vs. SWK: 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
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

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.

SWK

4.70%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

SWK’s Operating Profit Margin of 4.70% is in the lower quartile for the Machinery industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolCMISWK
Return on Equity (TTM)27.17%6.59%
Return on Assets (TTM)9.02%2.63%
Net Profit Margin (TTM)8.72%3.85%
Operating Profit Margin (TTM)12.28%4.70%
Gross Profit Margin (TTM)25.96%30.03%

Financial Strength

Current Ratio (MRQ)

CMI

1.64

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

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.

SWK

1.04

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

SWK’s Current Ratio of 1.04 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

CMI

0.69

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
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.

SWK

0.74

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

SWK’s Debt-to-Equity Ratio of 0.74 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. SWK: A comparison of their Debt-to-Equity Ratio (MRQ) against the Machinery industry benchmark.

Interest Coverage Ratio (TTM)

CMI

--

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

Interest Coverage Ratio data for CMI is currently unavailable.

SWK

1.75

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, SWK’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolCMISWK
Current Ratio (MRQ)1.641.04
Quick Ratio (MRQ)0.870.29
Debt-to-Equity Ratio (MRQ)0.690.74
Interest Coverage Ratio (TTM)--1.75

Growth

Revenue Growth

CMI vs. SWK: 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. SWK: 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

1.82%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

CMI’s Dividend Yield of 1.82% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

SWK

7.51%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

SWK’s Dividend Yield of 7.51% is exceptionally high, placing it well above the typical range for the Machinery industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

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

Dividend Payout Ratio (TTM)

CMI

34.07%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
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.

SWK

148.38%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

SWK’s Dividend Payout Ratio of 148.38% is in the upper quartile for the Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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

Dividend at a Glance

SymbolCMISWK
Dividend Yield (TTM)1.82%7.51%
Dividend Payout Ratio (TTM)34.07%148.38%

Valuation

Price-to-Earnings Ratio (TTM)

CMI

18.72

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

CMI’s P/E Ratio of 18.72 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.

SWK

19.77

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

SWK’s P/E Ratio of 19.77 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.

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

Price-to-Sales Ratio (TTM)

CMI

1.63

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

CMI’s P/S Ratio of 1.63 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.

SWK

0.76

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.76 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.

CMI vs. SWK: 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
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

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.

SWK

1.16

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

SWK’s P/B Ratio of 1.16 is in the lower quartile for the Machinery industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

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

Valuation at a Glance

SymbolCMISWK
Price-to-Earnings Ratio (TTM)18.7219.77
Price-to-Sales Ratio (TTM)1.630.76
Price-to-Book Ratio (MRQ)3.831.16
Price-to-Free Cash Flow Ratio (TTM)30.306.97