REVG vs CMI

For growth investors, REV Group, Inc.

(REVG) is the stronger pick with 3. 5% revenue growth year-over-year, versus -1. 3% for Cummins Inc. (CMI). Cummins Inc. (CMI) offers the better valuation at 33. 3x trailing P/E (25. 9x forward), making it the more compelling value choice. Analysts rate Cummins Inc. (CMI) a "Buy" — based on 51 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 33. 3x versus REV Group, Inc. at 33. 8x. On forward P/E, REV Group, Inc. is actually cheaper at 17. 2x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, REV Group, Inc.

(REVG) delivered a total return of +261. 2%, compared to +168. 7% for Cummins Inc. (CMI). Over 10 years, the gap is even starker: CMI returned +557. 4% versus REVG's +174. 2%. 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), REV Group, Inc.

(REVG) is the lower-risk stock at 1. 48β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 6% more volatile than REVG relative to the S&P 500. On balance sheet safety, REV Group, Inc. (REVG) carries a lower debt/equity ratio of 13% versus 61% for Cummins Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), REV Group, Inc.

(REVG) is pulling ahead at 3. 5% versus -1. 3% for Cummins Inc. (CMI). On earnings-per-share growth, the picture is similar: Cummins Inc. grew EPS -27. 7% year-over-year, compared to -60. 0% for REV Group, 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. 9% for REV Group, 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 7. 8% for REVG. 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, REV Group, Inc.

(REVG) trades at 17. 2x forward P/E versus 25. 9x for Cummins Inc. — 8. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CMI: -9. 0% to $621. 10.

All stocks in this comparison pay dividends.

Cummins Inc. (CMI) offers the highest yield at 1. 1%, versus 0. 4% for REV Group, Inc. (REVG).

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, +557. 4% 10Y return). Both have compounded well over 10 years (CMI: +557. 4%, REVG: +174. 2%), 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 REVG 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.