CUMMINS INC vs EMERSON ELECTRIC CO., two Industrial Machinery stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Cummins runs with almost no borrowing, a 0.03 debt-to-equity, and holds a 1.71 current ratio of liquidity, the conservative footing of a company that funds itself from operations. Emerson sits heavier, a 0.66 debt-to-equity and a thinner 0.87 current ratio, with current liabilities outrunning current assets. That lighter balance sheet helps Cummins post a 21% return on equity against Emerson's 12, well ahead even though it keeps a thinner slice of each sale, an 8% net margin to Emerson's 13%. The market prices the two almost identically on earnings, near 34 times each, while Emerson pays the slightly larger dividend, 1.4% to Cummins's 1.1. The cleaner balance sheet earns the higher return without the help of leverage.
Comparison updated 2026-06-15.
| Metric | CMI | EMR |
|---|---|---|
| Price | $675.92 | $138.81 |
| Market cap | $93.8B | $78.2B |
| Sector | Industrial Machinery | Industrial Machinery |
| Stage | Mature | Mature |
| P/E | 35.1 | — |
| P/B | 7.02 | 3.85 |
| P/S | 2.77 | 4.27 |
| EV/EBITDA | 22.1 | 61.9 |
| Revenue growth | +0.1% | +4.0% |
| Gross margin | 26.7% | — |
| Operating margin | 11.3% | — |
| Net margin | 8.2% | 13.3% |
| Return on equity | 20.8% | 12.0% |
| Return on assets | 8.1% | 5.8% |
| Return on invested capital | 20.4% | — |
| FCF yield | 2.9% | 4.0% |
| Dividend yield | 1.1% | 1.5% |
| Debt / equity | 0.03 | 0.66 |
| Current ratio | 1.71 | 0.87 |
| Altman Z (solvency) | 4.93 | 7.76 |
| Piotroski F (quality) | 6 / 9 | 8 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.