AutoZone vs Cummins

AutoZone vs Cummins: this page compares business models, financial performance, and market context to help readers understand how the companies operate within their sectors. The analysis is neutral and accessible, presenting context without opinion or recommendation. Educational content, not financial advice.

AutoZone vs Cummins: this page compares business models, financial performance, and market context to help readers understand how the companies operate within their sectors. The analysis is neutral an...

About The Companies

AutoZone (AZO)

AutoZone, Inc. (AZO) is a US-based specialty retailer of automotive replacement parts and accessories, serving both DIY (do‑it‑yourself) customers and professional mechanics. With a market capitalisation around $66.8bn, AutoZone operates a large store network and a growing online presence, backed by centralised inventory and logistics. Investors typically watch its same‑store sales, gross margins, and inventory turns as indicators of operational health. The company has historically prioritised cash generation, reinvestment and share repurchases, though past actions may not predict future policy. Key strengths include brand recognition, scale in the aftermarket parts segment and resilience to economic cycles that drive vehicle maintenance. Important risks include cyclical auto demand, competition from online and big‑box retailers, supply‑chain disruptions and shifts in vehicle technology. This summary is educational only and not personal financial advice — investments carry risk and can fall in value; consider your goals and consult a professional before acting.

Cummins (CMI)

Cummins Inc. (CMI) is a US-based designer and manufacturer of diesel and natural-gas engines, power-generation systems and related components such as filtration, fuel systems and turbochargers. The company sells to original-equipment manufacturers (OEMs), commercial vehicle fleets, industrial customers and the aftermarket, where parts and service provide recurring revenue and margin resilience. Cummins is investing in lower-emission technologies, including electrified powertrains and hydrogen capabilities, while continuing to support traditional internal-combustion platforms. With a market capitalisation near US$57.6bn, its performance tends to track global industrial and commercial vehicle demand, commodity costs and regulatory shifts. Key attractions for investors include a diversified product mix, a broad global distribution network and a sizeable aftermarket business, but risks include cyclical end markets, supply-chain pressures, commodity and currency headwinds, and the capital intensity of energy transition. This is general information only and not personalised financial advice; investors should assess suitability and consider the company’s filings and their own objectives and risk tolerance.

Comparison Snapshot

Key Financial Metrics

AZO

Metric

CMI

$57.54B

Market Cap

$72.25B

27.98%

Potential Profit

-4.15%

Buy

Analyst Rating

Buy

Why It's Moving

AutoZone Shares Dip After Q1 Earnings Miss Estimates, Raising Near-Term Caution

Earnings per share came in at $48.71, below the anticipated $50.52, marking a 3.72% negative surprise that may pressure near-term investor sentiment.
Revenue reached $4.63 billion, up from $4.28 billion last year but missing consensus estimates by 0.25%, indicating slightly softer demand or pricing pressures.
The company has now missed earnings estimates in each of the last four quarters, pointing to ongoing operational or market challenges despite overall sector strength.

Sentiment:

🐻Bearish

Cummins Shares Surge to New High on Strong Power Systems Demand and Investor Confidence

Q3 2025 revenue exceeded expectations at $8.3 billion, driven by strength in Power Systems and Distribution, critical for data centers and generators, signaling resilience in key end markets.
Cummins raised its quarterly dividend to $2.00 per share, reinforcing its commitment to shareholder returns and attracting dividend-focused investors seeking steady income streams.
The company’s 'Destination Zero' initiative in green hydrogen and hybrid powertrains via its Accelera business is generating positive analyst attention, highlighting future growth avenues beyond traditional engines.

Sentiment:

🐃Bullish

AutoZone Shares Dip After Q1 Earnings Miss Estimates, Raising Near-Term Caution

Earnings per share came in at $48.71, below the anticipated $50.52, marking a 3.72% negative surprise that may pressure near-term investor sentiment.
Revenue reached $4.63 billion, up from $4.28 billion last year but missing consensus estimates by 0.25%, indicating slightly softer demand or pricing pressures.
The company has now missed earnings estimates in each of the last four quarters, pointing to ongoing operational or market challenges despite overall sector strength.

Sentiment:

🐻Bearish

Cummins Shares Surge to New High on Strong Power Systems Demand and Investor Confidence

Q3 2025 revenue exceeded expectations at $8.3 billion, driven by strength in Power Systems and Distribution, critical for data centers and generators, signaling resilience in key end markets.
Cummins raised its quarterly dividend to $2.00 per share, reinforcing its commitment to shareholder returns and attracting dividend-focused investors seeking steady income streams.
The company’s 'Destination Zero' initiative in green hydrogen and hybrid powertrains via its Accelera business is generating positive analyst attention, highlighting future growth avenues beyond traditional engines.

Sentiment:

🐃Bullish

Which Baskets Do They Appear In?

U.S. Auto Tariff Shield: Domestic Winners

This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.

Published: July 20, 2025

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Which Baskets Do They Appear In?

U.S. Auto Tariff Shield: Domestic Winners

This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.

Published: July 20, 2025

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Investment Analysis

AutoZone

AZO

Pros

AutoZone maintains a dominant market position with over 6,800 stores across the US, Mexico, and Brazil, supporting strong brand recognition and customer reach.
The company has demonstrated consistent revenue growth, with fiscal 2025 revenues rising 2.4% year-on-year, reflecting resilience in both DIY and DIFM segments.
AutoZone's robust share repurchase programme signals management confidence and provides potential for increased shareholder value despite market volatility.

Considerations

AutoZone's net margin remains relatively low, suggesting ongoing challenges in converting revenue growth into sustainable profitability.
The company's balance sheet is stretched, with a debt-to-capital ratio significantly above industry average, increasing financial risk in a rising rate environment.
Negative return on equity and recent earnings misses raise concerns about the company's ability to generate returns from shareholder capital.

Cummins

CMI

Pros

Cummins holds a leading global position in engine and power solutions, benefiting from diversified end markets and strong brand reputation.
The company has made significant investments in alternative fuel and electrification technologies, positioning it for long-term growth in a shifting energy landscape.
Cummins maintains a solid balance sheet with healthy liquidity, enabling it to weather cyclical downturns and fund strategic initiatives.

Considerations

Cummins' earnings are highly sensitive to global economic cycles and commodity prices, exposing it to volatility in demand for heavy-duty equipment.
Regulatory pressures and the transition to zero-emission technologies present execution risks and could require substantial capital investment.
The company faces increasing competition from new entrants in the electrification space, which may erode margins and market share over time.

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About The Companies

Comparison Snapshot

Why It's Moving

AutoZone Shares Dip After Q1 Earnings Miss Estimates, Raising Near-Term Caution

Cummins Shares Surge to New High on Strong Power Systems Demand and Investor Confidence

AutoZone Shares Dip After Q1 Earnings Miss Estimates, Raising Near-Term Caution

Cummins Shares Surge to New High on Strong Power Systems Demand and Investor Confidence

Which Baskets Do They Appear In?

U.S. Auto Tariff Shield: Domestic Winners

Which Baskets Do They Appear In?

U.S. Auto Tariff Shield: Domestic Winners