WPRT vs CMI

For growth investors, Cummins Inc.

(CMI) is the stronger pick with -1. 3% revenue growth year-over-year, versus -8. 9% for Westport Fuel Systems Inc. (WPRT). 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 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.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +181. 7%, compared to -96. 8% for Westport Fuel Systems Inc. (WPRT). Over 10 years, the gap is even starker: CMI returned +571. 7% versus WPRT's -91. 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), Westport Fuel Systems Inc.

(WPRT) is the lower-risk stock at 0. 88β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 78% more volatile than WPRT relative to the S&P 500. On balance sheet safety, Westport Fuel Systems Inc. (WPRT) carries a lower debt/equity ratio of 39% 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 -8. 9% for Westport Fuel Systems Inc. (WPRT). On earnings-per-share growth, the picture is similar: Westport Fuel Systems Inc. grew EPS 56. 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. 2% for Westport Fuel Systems 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 -8. 2% for WPRT. 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.

In this comparison, CMI (1.

1% yield) pays a dividend. WPRT 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). Both have compounded well over 10 years (CMI: +571. 7%, WPRT: -91. 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.

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

CMI pays a dividend while WPRT 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.