ARCB vs CMI

For growth investors, Cummins Inc.

(CMI) is the stronger pick with -1. 3% revenue growth year-over-year, versus -4. 0% for ArcBest Corporation (ARCB). Cummins Inc. (CMI) offers the better valuation at 34. 9x trailing P/E (27. 2x forward), making it the more compelling value choice. Analysts rate ArcBest Corporation (ARCB) a "Buy" — based on 24 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, Cummins Inc.

(CMI) is the cheapest at 34. 9x versus ArcBest Corporation at 46. 5x. On forward P/E, ArcBest Corporation is actually cheaper at 23. 6x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +181. 7%, compared to +43. 3% for ArcBest Corporation (ARCB). Over 10 years, the gap is even starker: ARCB returned +635. 7% versus CMI's +571. 7%. 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), Cummins Inc.

(CMI) is the lower-risk stock at 1. 57β versus ArcBest Corporation's 1. 90β — meaning ARCB is approximately 21% more volatile than CMI relative to the S&P 500. On balance sheet safety, ArcBest Corporation (ARCB) carries a lower debt/equity ratio of 52% 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 -4. 0% for ArcBest Corporation (ARCB). On earnings-per-share growth, the picture is similar: Cummins Inc. grew EPS -27. 7% year-over-year, compared to -64. 1% for ArcBest Corporation. Over a 3-year CAGR, CMI leads at 6. 2% 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 1. 5% for ArcBest 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 2. 3% for ARCB. 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.

On forward earnings alone, ArcBest Corporation (ARCB) trades at 23.

6x forward P/E versus 27. 2x for Cummins Inc. — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCB: -3. 8% to $117. 14.

All stocks in this comparison pay dividends.

Cummins Inc. (CMI) offers the highest yield at 1. 1%, versus 0. 4% for ArcBest Corporation (ARCB).

For long-horizon retirement investors, Cummins Inc.

(CMI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 1% yield, +571. 7% 10Y return). ArcBest Corporation (ARCB) carries a higher beta of 1. 90 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CMI: +571. 7%, ARCB: +635. 7%), 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.

CMI pays a dividend while ARCB 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.