CUMMINS INC vs EATON CORPORATION plc, two Industrial Machinery stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Cummins trades near 33 times trailing earnings while Eaton commands closer to 38, and the gap is not subtle once you see what each keeps. Eaton turns nearly 14 cents of every sales dollar into net profit against Cummins at 8 cents, so the higher multiple is partly a price for the richer income statement. The market is paying up for Eaton's electrical mix, and the cleaner balance sheet sits with Cummins, whose debt-to-equity rounds to nothing next to Eaton's 1.07. Both earn around 20% on equity and convert a thin slice of price into free cash, near 2.9% and 2.5%. The bet on Cummins is that an engine and power maker re-rates toward the electrical crowd; the bet on Eaton is that the margin lead holds.
Comparison updated 2026-06-15.
| Metric | CMI | ETN |
|---|---|---|
| Price | $675.92 | $407.11 |
| Market cap | $93.8B | $158.4B |
| Sector | Industrial Machinery | Industrial Machinery |
| Stage | Mature | Growth |
| P/E | 35.1 | 39.8 |
| P/B | 7.02 | 8.02 |
| P/S | 2.77 | 5.56 |
| EV/EBITDA | 22.1 | 171.1 |
| Revenue growth | +0.1% | +12.7% |
| Gross margin | 26.7% | — |
| Operating margin | 11.3% | — |
| Net margin | 8.2% | 14.0% |
| Return on equity | 20.8% | 20.2% |
| Return on assets | 8.1% | 7.2% |
| Return on invested capital | 20.4% | — |
| FCF yield | 2.9% | 2.4% |
| Dividend yield | 1.1% | 1.0% |
| Debt / equity | 0.03 | 1.07 |
| Current ratio | 1.71 | 1.19 |
| Altman Z (solvency) | 4.93 | 6.85 |
| Piotroski F (quality) | 6 / 9 | 4 / 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.