OSK vs CMI vs PCAR

For growth investors, Cummins Inc.

(CMI) is the stronger pick with -1. 3% revenue growth year-over-year, versus -15. 5% for PACCAR Inc (PCAR). Oshkosh Corporation (OSK) offers the better valuation at 15. 6x trailing P/E (14. 0x forward), making it the more compelling value choice. Analysts rate Oshkosh Corporation (OSK) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Oshkosh Corporation (OSK) is the cheapest at 15.

6x versus Cummins Inc. at 34. 9x. On forward P/E, Oshkosh Corporation is actually cheaper at 14. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PACCAR Inc wins at 1. 61x versus Oshkosh Corporation's 2. 92x — a reasonable growth-adjusted valuation.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +181. 7%, compared to +25. 0% for Oshkosh Corporation (OSK). Over 10 years, the gap is even starker: CMI returned +571. 7% versus OSK's +267. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), PACCAR Inc (PCAR) is the lower-risk stock at 1.

01β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 56% more volatile than PCAR relative to the S&P 500. On balance sheet safety, Oshkosh Corporation (OSK) carries a lower debt/equity ratio of 24% versus 61% for Cummins Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cummins Inc.

(CMI) is pulling ahead at -1. 3% versus -15. 5% for PACCAR Inc (PCAR). On earnings-per-share growth, the picture is similar: Oshkosh Corporation grew EPS -3. 5% year-over-year, compared to -42. 9% for PACCAR Inc. Over a 3-year CAGR, OSK leads at 11. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cummins Inc.

(CMI) is the more profitable company, earning 8. 4% net margin versus 6. 2% for Oshkosh Corporation — meaning it keeps 8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CMI leads at 11. 5% versus 9. 1% for OSK. At the gross margin level — before operating expenses — CMI leads at 25. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, PACCAR Inc (PCAR) is the more undervalued stock at a PEG of 1. 61x versus Oshkosh Corporation's 2. 92x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Oshkosh Corporation (OSK) trades at 14. 0x forward P/E versus 27. 2x for Cummins Inc. — 13. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OSK: 7. 2% to $168. 00.

All stocks in this comparison pay dividends.

PACCAR Inc (PCAR) offers the highest yield at 3. 7%, versus 0. 2% for Oshkosh Corporation (OSK).

For long-horizon retirement investors, PACCAR Inc (PCAR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

01), 3. 7% yield, +278. 4% 10Y return). Both have compounded well over 10 years (PCAR: +278. 4%, OSK: +267. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: OSK is a small-cap deep-value stock; CMI is a mid-cap quality compounder stock; PCAR is a mid-cap income-oriented stock. CMI, PCAR pay a dividend while OSK does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.