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CMI vs. WSO.B: Cummins vs. Watsco Stock Comparison

How do Cummins (CMI) and Watsco (WSO.B) 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 Watsco (WSO.B) both fall under the Capital Goods industry group, but CMI is classified in Machinery while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Cummins (CMI) and Watsco (WSO.B)
Profile ItemCMIWSO.B
NameCummins Inc.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryTrading Companies & Distributors
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentTrading Companies & Distributors
Market Capitalization61.69 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CMI
WSO.B
GSPC
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Cummins (CMI) vs. Watsco (WSO.B), 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 Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Cummins (CMI) and Watsco (WSO.B)
MetricCMIWSO.B
Total Return (1Y)-0.52%-11.21%
Total Return (3Y, Annualized)31.79%-3.05%
Total Return (5Y, Annualized)17.12%4.30%

Risk Profile

Drawdown History

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

Risk Metrics

Cummins (CMI) trades around 1.14M shares per day on average, while Watsco (WSO.B) sees only 74 — a volume gap that can matter for position sizing, exit liquidity, and order execution.

Risk profile metrics for Cummins (CMI) and Watsco (WSO.B)
MetricCMIWSO.B
Volatility (1Y, Annualized)36.83%40.28%
Beta (5Y)1.260.64
Max Drawdown (5Y)-38.12%-43.41%
Avg. Volume (3M)1.14M74

Risk-Adjusted Performance

Risk-Return Positioning

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CMI and WSO.B 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 Watsco (WSO.B)
MetricCMIWSO.B
Sharpe Ratio (1Y)-0.13-0.38
Sortino Ratio (1Y)-0.18-0.57

Profitability

ROE (TTM)

Cummins (CMI) at 25.05% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% is closer to the peer norm — stronger capital efficiency for CMI.

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%

WSO.B

Capital Goods industry group

16.21%

Max
40.55%
Q3
19.29%
WSO.B
16.21%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Cummins (CMI) at 9.26% and Watsco (WSO.B) at 6.31% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

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%

WSO.B

Capital Goods industry group

6.31%

Max
27.47%
Q3
12.10%
WSO.B
6.31%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Cummins (CMI) at 13.95% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

WSO.B

Capital Goods industry group

10.14%

Max
36.60%
Q3
18.33%
Median
11.12%
WSO.B
10.14%
Q1
5.14%
Min
-12.63%
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Cummins (CMI) and Watsco (WSO.B)
MetricCMIWSO.B
ROE (TTM)25.05%16.21%
ROA (TTM)7.60%8.27%
Net Margin (TTM)9.26%6.31%
Operating Margin (TTM)13.95%10.14%
Gross Margin (TTM)26.32%27.18%

Growth

Revenue Growth

Both Cummins (CMI) at -1.27% and Watsco (WSO.B) at -4.98% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Watsco (WSO.B) at -7.47% 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. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cummins (CMI) and Watsco (WSO.B)
MetricCMIWSO.B
Revenue Growth (YoY)-1.27%-4.98%
Revenue Growth (3Y CAGR)6.25%-0.16%
EPS Growth (YoY)-27.74%-7.47%
EPS Growth (3Y CAGR)10.68%-6.89%

Financial Strength

Current Ratio (MRQ)

Cummins (CMI) at 1.74 keeps current ratio within its industry’s typical mid-range, while Watsco (WSO.B) at 3.15 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets 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

WSO.B

Capital Goods industry group

3.15

Max
5.22
WSO.B
3.15
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watsco (WSO.B) at 0.16 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

WSO.B

Capital Goods industry group

0.16

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WSO.B
0.16
Min
0.00
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Cummins (CMI) vs. Watsco (WSO.B): 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 Watsco (WSO.B)
MetricCMIWSO.B
Current Ratio (MRQ)1.743.15
Debt / Equity (MRQ)0.520.16
Net Debt / EBITDA0.62-0.14

Dividends

Dividend Yield (TTM)

Cummins (CMI) at 1.83% earns its spot in the top quartile of its industry’s yields; Watsco (WSO.B) at 4.02% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.

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%

WSO.B

Capital Goods industry group

4.02%

WSO.B
4.02%
Max
2.66%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Cummins (CMI) reports 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%

WSO.B

Capital Goods industry group

109.66%

WSO.B
109.66%
Max
67.39%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Cummins (CMI) and Watsco (WSO.B)
MetricCMIWSO.B
Dividend Yield (TTM)1.83%4.02%
Dividend Payout Ratio (TTM)34.21%109.66%

Valuation

P/E Ratio (TTM)

Cummins (CMI) at 18.78 sits in the cheaper P/E ratio quartile, while Watsco (WSO.B) at 27.26 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

WSO.B

Capital Goods industry group

27.26

Max
59.38
Q3
35.92
WSO.B
27.26
Median
25.41
Q1
19.47
Min
3.03
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Cummins (CMI) at 1.72 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

WSO.B

Capital Goods industry group

1.74

Max
7.54
Q3
3.76
Median
2.15
WSO.B
1.74
Q1
1.03
Min
0.03
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Cummins (CMI) at 4.63 and Watsco (WSO.B) at 3.99 are valued close to their industries’ norm against book — neither stands out from peers.

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

WSO.B

Capital Goods industry group

3.99

Max
9.66
Q3
5.00
WSO.B
3.99
Median
3.12
Q1
1.81
Min
-1.08
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Cummins (CMI) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Cummins (CMI) and Watsco (WSO.B)
MetricCMIWSO.B
P/E Ratio (TTM)18.7827.26
P/S Ratio (TTM)1.721.74
P/B Ratio (MRQ)4.633.99
Free Cash Flow Yield (TTM)4.06%3.50%