GNRC vs CMI

For growth investors, Cummins Inc.

(CMI) is the stronger pick with -1. 3% revenue growth year-over-year, versus -2. 0% for Generac Holdings Inc. (GNRC). 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 Generac Holdings Inc. (GNRC) a "Buy" — based on 39 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 Generac Holdings Inc. at 99. 4x. On forward P/E, Cummins Inc. is actually cheaper at 27. 2x.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +181. 7%, compared to -15. 9% for Generac Holdings Inc. (GNRC). Over 10 years, the gap is even starker: GNRC returned +668. 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 Generac Holdings Inc. 's 1. 69β — meaning GNRC is approximately 8% more volatile than CMI relative to the S&P 500. On balance sheet safety, Generac Holdings Inc. (GNRC) carries a lower debt/equity ratio of 51% 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 -2. 0% for Generac Holdings Inc. (GNRC). On earnings-per-share growth, the picture is similar: Cummins Inc. grew EPS -27. 7% year-over-year, compared to -50. 1% for Generac Holdings 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 3. 8% for Generac Holdings Inc. — 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 6. 9% for GNRC. At the gross margin level — before operating expenses — GNRC leads at 38. 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, Cummins Inc.

(CMI) trades at 27. 2x forward P/E versus 31. 0x for Generac Holdings Inc. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GNRC: 1. 4% to $271. 22.

In this comparison, CMI (1.

1% yield) pays a dividend. GNRC does not pay a meaningful dividend and should not be held primarily for income.

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). Generac Holdings Inc. (GNRC) carries a higher beta of 1. 69 — 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%, GNRC: +668. 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 GNRC 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.