CMI Jumps 15% in a Month, But Does GATX Offer Better Fundamentals?
GATX (GATX) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Cummins (CMI), suggesting you may be better off investing in GATX
- GATX’s quarterly revenue growth was 11.3%, vs. CMI’s -2.7%.
- In addition, its Last 12 Months revenue growth came in at 11.7%, ahead of CMI’s -0.4%.
- GATX leads on profitability over both periods – LTM margin of 31.2% and 3-year average of 29.0%.
CMI designs, manufactures, and services diesel and natural gas engines across five segments, selling to OEMs, distributors, dealers, and other customers worldwide. 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.
Valuation & Performance Overview
| CMI | GATX | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 14.6 | 10.5 | GATX |
| Revenue Growth | |||
| Last Quarter | -2.7% | 11.3% | GATX |
| Last 12 Months | -0.4% | 11.7% | GATX |
| Last 3 Year Average | 12.1% | 9.8% | CMI |
| Operating Margins | |||
| Last 12 Months | 10.6% | 31.2% | GATX |
| Last 3 Year Average | 10.0% | 29.0% | GATX |
| Momentum | |||
| Last 3 Year Return | 87.0% | 59.1% | CMI |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CMI Revenue Comparison | GATX Revenue Comparison
See more margin details: CMI Operating Income Comparison | GATX Operating Income Comparison
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).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CMI Return | 31% | -2% | 14% | 2% | 49% | 11% | 129% | <=== | |
| GATX Return | 3% | 28% | 4% | 15% | 31% | -1% | 102% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 93% | ||
| Monthly Win Rates [3] | |||||||||
| CMI Win Rate | 67% | 58% | 50% | 42% | 67% | 71% | 59% | ||
| GATX Win Rate | 50% | 67% | 58% | 58% | 67% | 43% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| CMI Max Drawdown | -42% | -7% | -14% | -14% | -4% | -23% | -17% | ||
| GATX Max Drawdown | -36% | -1% | -17% | -5% | -3% | -8% | -12% | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read GATX Dip Buyer Analyses and CMI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.