DAN vs CMI

For growth investors, Cummins Inc.

(CMI) is the stronger pick with -1. 3% revenue growth year-over-year, versus -27. 1% for Dana Incorporated (DAN). 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 Dana Incorporated (DAN) 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 Dana Incorporated at 55. 6x. On forward P/E, Dana Incorporated is actually cheaper at 14. 0x — 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 +44. 1% for Dana Incorporated (DAN). Over 10 years, the gap is even starker: CMI returned +571. 7% versus DAN's +219. 0%. 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), Dana Incorporated (DAN) is the lower-risk stock at 1.

37β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 14% more volatile than DAN relative to the S&P 500. On balance sheet safety, Cummins Inc. (CMI) carries a lower debt/equity ratio of 61% versus 4% for Dana Incorporated — giving it more financial flexibility in a downturn.

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

(CMI) is pulling ahead at -1. 3% versus -27. 1% for Dana Incorporated (DAN). On earnings-per-share growth, the picture is similar: Dana Incorporated grew EPS 264. 1% year-over-year, compared to -27. 7% for Cummins Inc.. 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. 1% for Dana Incorporated — 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. 8% for DAN. 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, Dana Incorporated (DAN) 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 DAN: 3. 9% to $37. 00.

All stocks in this comparison pay dividends.

Dana Incorporated (DAN) offers the highest yield at 1. 1%, versus 1. 1% for Cummins Inc. (CMI).

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). Both have compounded well over 10 years (CMI: +571. 7%, DAN: +219. 0%), 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.

These companies operate in different sectors (DAN (Consumer Cyclical) and CMI (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.