TTC vs CMI

For growth investors, Cummins Inc.

(CMI) is the stronger pick with -1. 3% revenue growth year-over-year, versus -1. 6% for The Toro Company (TTC). The Toro Company (TTC) offers the better valuation at 30. 3x trailing P/E (21. 0x 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, The Toro Company (TTC) is the cheapest at 30.

3x versus Cummins Inc. at 34. 9x. On forward P/E, The Toro Company is actually cheaper at 21. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Cummins Inc. wins at 2. 30x versus The Toro Company's 23. 10x.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +181. 7%, compared to -11. 2% for The Toro Company (TTC). Over 10 years, the gap is even starker: CMI returned +557. 4% versus TTC's +144. 8%. 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), The Toro Company (TTC) is the lower-risk stock at 0.

68β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 132% more volatile than TTC relative to the S&P 500. On balance sheet safety, Cummins Inc. (CMI) carries a lower debt/equity ratio of 61% versus 70% for The Toro Company — giving it more financial flexibility in a downturn.

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

(CMI) is pulling ahead at -1. 3% versus -1. 6% for The Toro Company (TTC). On earnings-per-share growth, the picture is similar: The Toro Company grew EPS -20. 9% 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 7. 0% for The Toro Company — 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 10. 9% for TTC. At the gross margin level — before operating expenses — TTC leads at 33. 4%, 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, Cummins Inc. (CMI) is the more undervalued stock at a PEG of 2. 30x versus The Toro Company's 23. 10x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Toro Company (TTC) trades at 21. 0x forward P/E versus 25. 9x for Cummins Inc. — 5. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TTC: -10. 4% to $86. 00.

All stocks in this comparison pay dividends.

The Toro Company (TTC) offers the highest yield at 1. 6%, versus 1. 1% for Cummins Inc. (CMI).

For long-horizon retirement investors, The Toro Company (TTC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

68), 1. 6% yield, +144. 8% 10Y return). Cummins Inc. (CMI) carries a higher beta of 1. 57 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TTC: +144. 8%, CMI: +557. 4%), 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.

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.