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CMI vs. WTS: Cummins vs. Watts Water Stock Comparison

How do Cummins (CMI) and Watts Water (WTS) 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 Watts Water (WTS) both belong to the Machinery industry, though CMI is classified under Construction Machinery & Heavy Transportation Equipment while WTS falls under Industrial Machinery & Supplies & Components.

Company profile comparison for Cummins (CMI) and Watts Water (WTS)
Profile ItemCMIWTS
NameCummins Inc.Watts Water Technologies, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryMachinery
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentIndustrial Machinery & Supplies & Components
Market Capitalization61.69 billion USD11.55 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973August 21, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CMI
WTS
GSPC
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Cummins (CMI) vs. Watts Water (WTS), 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 Watts Water (WTS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cummins (CMI) and Watts Water (WTS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cummins (CMI) and Watts Water (WTS)
MetricCMIWTS
Total Return (1Y)-0.52%33.85%
Total Return (3Y, Annualized)31.79%25.59%
Total Return (5Y, Annualized)17.12%12.56%

Risk Profile

Drawdown History

CMI
WTS
GSPC
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Cummins (CMI) vs. Watts Water (WTS), 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 Watts Water (WTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cummins (CMI) and Watts Water (WTS)
MetricCMIWTS
Volatility (1Y, Annualized)36.83%27.38%
Beta (5Y)1.261.11
Max Drawdown (5Y)-38.12%-44.08%
Avg. Volume (3M)1.14M225.08K

Risk-Adjusted Performance

Risk-Return Positioning

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CMI and WTS 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 Watts Water (WTS)
MetricCMIWTS
Sharpe Ratio (1Y)-0.131.08
Sortino Ratio (1Y)-0.181.78

Profitability

ROE (TTM)

Both Cummins (CMI) at 25.05% and Watts Water (WTS) at 20.91% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

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%

WTS

Capital Goods industry group

20.91%

Max
40.55%
WTS
20.91%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Watts Water (WTS) at 16.00% retains a top-quartile share of revenue as profit, ahead of Cummins (CMI) at 9.26%, which keeps about the industry-typical share.

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%

WTS

Capital Goods industry group

16.00%

Max
27.47%
WTS
16.00%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Watts Water (WTS) at 20.85% operates in the top operating margin quartile, ahead of Cummins (CMI) at 13.95%, which runs around its industry’s norm.

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%

WTS

Capital Goods industry group

20.85%

Max
36.60%
WTS
20.85%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Cummins (CMI) and Watts Water (WTS)
MetricCMIWTS
ROE (TTM)25.05%20.91%
ROA (TTM)7.60%12.05%
Net Margin (TTM)9.26%16.00%
Operating Margin (TTM)13.95%20.85%
Gross Margin (TTM)26.32%49.09%

Growth

Revenue Growth

Watts Water (WTS) at 8.27% is around its peer norm for revenue growth, while Cummins (CMI) at -1.27% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Cummins (CMI) vs. Watts Water (WTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Watts Water (WTS) at 17.03% 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. Watts Water (WTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cummins (CMI) and Watts Water (WTS)
MetricCMIWTS
Revenue Growth (YoY)-1.27%8.27%
Revenue Growth (3Y CAGR)6.25%7.20%
EPS Growth (YoY)-27.74%17.03%
EPS Growth (3Y CAGR)10.68%10.78%

Financial Strength

Current Ratio (MRQ)

Both Cummins (CMI) at 1.74 and Watts Water (WTS) at 2.80 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity 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

WTS

Capital Goods industry group

2.80

Max
5.22
Q3
2.95
WTS
2.80
Median
2.08
Q1
1.43
Min
0.36
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watts Water (WTS) at 0.08 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

WTS

Capital Goods industry group

0.08

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WTS
0.08
Min
0.00
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Cummins (CMI) vs. Watts Water (WTS): 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 Watts Water (WTS)
MetricCMIWTS
Current Ratio (MRQ)1.742.80
Debt / Equity (MRQ)0.520.08
Net Debt / EBITDA0.62-0.40

Dividends

Dividend Yield (TTM)

Cummins (CMI) at 1.83% delivers top-quartile income for its industry, while Watts Water (WTS) at 0.66% pays a more typical yield — both are credible income propositions, CMI the richer one.

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%

WTS

Capital Goods industry group

0.66%

Max
2.66%
Q3
1.14%
WTS
0.66%
Median
0.24%
Q1
0.00%
Min
0.00%
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watts Water (WTS) at 17.24% pays out a band-typical share of earnings, while Cummins (CMI) at 34.21% distributes more than its industry norm — less retained, thinner cover.

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%

WTS

Capital Goods industry group

17.24%

Max
67.39%
Q3
28.02%
WTS
17.24%
Median
6.86%
Q1
0.00%
Min
0.00%
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Cummins (CMI) and Watts Water (WTS)
MetricCMIWTS
Dividend Yield (TTM)1.83%0.66%
Dividend Payout Ratio (TTM)34.21%17.24%

Valuation

P/E Ratio (TTM)

Cummins (CMI) at 18.78 sits in the cheaper P/E ratio quartile, while Watts Water (WTS) at 25.95 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

WTS

Capital Goods industry group

25.95

Max
59.38
Q3
35.92
WTS
25.95
Median
25.41
Q1
19.47
Min
3.03
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Cummins (CMI) at 1.72 is priced about in line with its industry on P/S ratio, while Watts Water (WTS) at 4.14 sits in the pricier quartile — WTS costs more per dollar of sales.

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

WTS

Capital Goods industry group

4.14

Max
7.54
WTS
4.14
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Cummins (CMI) vs. Watts Water (WTS): 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 Watts Water (WTS) at 4.98 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

WTS

Capital Goods industry group

4.98

Max
9.66
Q3
5.00
WTS
4.98
Median
3.12
Q1
1.81
Min
-1.08
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Cummins (CMI) vs. Watts Water (WTS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Cummins (CMI) and Watts Water (WTS)
MetricCMIWTS
P/E Ratio (TTM)18.7825.95
P/S Ratio (TTM)1.724.14
P/B Ratio (MRQ)4.634.98
Free Cash Flow Yield (TTM)4.06%2.21%