Cummins surged 16% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer GATX gives you more. GATX (GATX) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Cummins (CMI) stock, suggesting you may be better off investing in GATX
GATX's quarterly revenue growth was 8.4%, vs. CMI's -1.6%.In addition, its Last 12 Months revenue growth came in at 10.7%, ahead of CMI's -1.8%.GATX leads on profitability over both periods - LTM margin of 30.6% and 3-year average of 29.2%.
CMIGATXPreferred Valuation P/EBIT Ratio17.910.8GATX Revenue Growth Last Quarter-1.6%8.4%GATXLast 12 Months-1.8%10.7%GATXLast 3 Year Average9.4%10.3%GATX Operating Margins Last 12 Months 11.2%30.6%GATXLast 3 Year Average 10.4%29.2%GATX Momentum Last 3 Year Return107.9%47.2%CMI
As a quick background: [1] CMI designs, manufactures, and services diesel and natural gas engines across five segments, selling to OEMs, distributors, dealers, and other customers worldwide. [2] GATX leases tank and freight railcars and locomotives globally for petroleum, chemical, food/agriculture, and transportation industries, managing a fleet of around 147,000 railcars.
But do these numbers tell the full story? Read Buy or Sell GATX Stock to see if GATX's edge holds up under the hood or if Cummins still has cards to play (see Buy or Sell CMI Stock).
Stock picking can fail no matter how good the strategy is.
High Quality Portfolio turns single-stock insights into a robust market beating portfolio strategy.