CMI vs EMR: Cummins and Emerson Electric compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Emerson Electric is the larger company, worth $86.0B, about 1.2 times Cummins.
- Cummins grew revenue faster over the last year (+9.4% vs +7.0%).
- On earnings, Cummins is the cheaper stock (26.4x vs 35.5x).
- Emerson Electric's price assumes faster free cash flow growth: about 11% a year, against 10% for Cummins (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | CMI | EMR |
|---|---|---|
| Market cap | $70.1B | $86.0B |
| Share price | $517.32 | $161.83 |
| Revenue (last fiscal year) | $33.7B | $18.0B |
| Free cash flow (last fiscal year) | $2.4B | $2.7B |
| Revenue growth, last year | +9.4% | +7.0% |
| Revenue growth per year, last 5 fiscal years | +8.8% | +8.6% |
| Operating margin | 11.2% | — |
| Net margin | 7.8% | 13.8% |
| Return on equity | 21.1% | 12.7% |
| P/E (trailing) | 26.4x | 35.5x |
| Price / free cash flow | 29.4x | 32.2x |
| EV / EBITDA | 13.8x | 20.9x |
| FCF growth the price implies | 10.0% | 11.2% |
| Dividend yield | 1.5% | 1.4% |
| Debt / equity | 1.69x | 1.07x |
| Fundamental grade | C | C |
| Superinvestors holding it | 7 | 7 |
| Insider purchases, last 12 months | 6 | 4 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Cummins
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $24.0B | $1.5B | 11.3% |
| 2022 | $28.1B | $1.0B | 10.4% |
| 2023 | $34.1B | $2.8B | 5.2% |
| 2024 | $34.1B | $279M | 11.0% |
| 2025 | $33.7B | $2.4B | 12.0% |
Emerson Electric
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $12.9B | $3.2B | — |
| 2022 | $13.8B | $2.6B | — |
| 2023 | $15.2B | $274M | — |
| 2024 | $17.5B | $2.9B | — |
| 2025 | $18.0B | $2.7B | — |
Where the revenue comes from
Cummins · by segments, 2021
Engine$10.0B33%
Distribution$7.8B26%
Components$7.7B26%
Power Systems$4.4B15%
New Power$116M0%
Emerson Electric · by segments, 2022
Automation Solutions$11.8B60%
Climate Technologies$5.2B26%
Tools & Home Products$2.0B10%
AspenTech$656M3%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open CMI in InvestinglyQuestions
Which is bigger, Cummins or Emerson Electric?
Emerson Electric (EMR), at $86.0B against $70.1B.
Is CMI or EMR cheaper?
By trailing P/E, Cummins (26.4x) is cheaper than Emerson Electric (35.5x). A lower multiple can also mean the market expects less growth.
Which grows faster, CMI or EMR?
Cummins: revenue grew +9.4% over the last year, against +7.0%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.