Carvana vs Cummins

Carvana Co. and Cummins Inc. are compared to illuminate their business models, financial performance, and market context. This page presents neutral, accessible explanations of how each company creates value, the sectors and markets in which they operate, and the factors that influence their performance. Educational content, not financial advice.

Carvana Co. and Cummins Inc. are compared to illuminate their business models, financial performance, and market context. This page presents neutral, accessible explanations of how each company create...

Comparison Snapshot

Key Financial Metrics

CVNA

Metric

CMI

$103.05B

Market Cap

$78.68B

-6.44%

Potential Profit

-10.29%

Buy

Analyst Rating

Buy

Why It's Moving

Carvana surges to new 1-year high as analysts hike targets amid profitability momentum.

BTIG boosted its price target to $535 with a buy rating, while Stephens lifted theirs to $519 and Morgan Stanley reaffirmed overweight, reflecting strong Wall Street optimism.
Revenue jumped 54.5% year-over-year to $5.65B in the last quarter, beating estimates and underscoring robust demand recovery in used vehicles.
Operating margins hit near 10% with LTM income at $2B, highlighting efficiency gains in reconditioning and logistics that bolster scalability.

Sentiment:

🐃Bullish

Cummins Hits New 52-Week High as Data Center Power Demand Fuels Momentum Amid Truck Slowdown.

Stock soared to $584.70 52-week high on January 21, reflecting optimism despite insider sales totaling 19,330 shares last quarter.
Q3 earnings crushed estimates with EPS of $5.59 beating $4.83 forecasts and revenue of $8.32B topping $7.97B expectations, even as overall sales dipped 1.6% year-over-year.
Power Systems segment thrives on data center backup demand, balancing softer Engine and Components sales hit by lower U.S. and Mexico truck volumes; Raymond James upgraded to Outperform with $585 target.

Sentiment:

🐃Bullish

Carvana surges to new 1-year high as analysts hike targets amid profitability momentum.

BTIG boosted its price target to $535 with a buy rating, while Stephens lifted theirs to $519 and Morgan Stanley reaffirmed overweight, reflecting strong Wall Street optimism.
Revenue jumped 54.5% year-over-year to $5.65B in the last quarter, beating estimates and underscoring robust demand recovery in used vehicles.
Operating margins hit near 10% with LTM income at $2B, highlighting efficiency gains in reconditioning and logistics that bolster scalability.

Sentiment:

🐃Bullish

Cummins Hits New 52-Week High as Data Center Power Demand Fuels Momentum Amid Truck Slowdown.

Stock soared to $584.70 52-week high on January 21, reflecting optimism despite insider sales totaling 19,330 shares last quarter.
Q3 earnings crushed estimates with EPS of $5.59 beating $4.83 forecasts and revenue of $8.32B topping $7.97B expectations, even as overall sales dipped 1.6% year-over-year.
Power Systems segment thrives on data center backup demand, balancing softer Engine and Components sales hit by lower U.S. and Mexico truck volumes; Raymond James upgraded to Outperform with $585 target.

Sentiment:

🐃Bullish

Investment Analysis

Carvana

CVNA

Pros

Carvana operates the largest online used car retail platform in the US, leveraging technology for a differentiated customer experience and market share gains.
The company has demonstrated impressive revenue growth with ambitions of a long-term CAGR of 18-19% through 2032, reflecting strong growth potential.
Analyst consensus shows moderate buy ratings with an upside potential around 20%, supported by Carvana’s evolving operational efficiency and market position.

Considerations

Carvana’s valuation metrics are notably high, with a P/E ratio above 75 and price-to-book ratio over 40, indicating potentially elevated market expectations and risk.
The company faces macroeconomic headwinds and execution risks linked to high debt levels and the volatility of the used car market demand.
Carvana’s stock price shows significant volatility, with some forecasts predicting considerable short-term declines, especially in early 2026 and beyond.

Cummins

CMI

Pros

Cummins is a well-established global leader in engines and power generation products with a strong market position across diverse industries.
The company benefits from steady demand driven by infrastructure development, electrification trends, and emissions regulations boosting product upgrades.
Cummins maintains a solid balance sheet and has shown consistent profitability supported by operational efficiency and ongoing investments in innovation.

Considerations

Cummins is exposed to cyclicality in industrial and automotive sectors, which can pressure earnings during economic downturns.
Transition to electrification presents execution risk and competitive challenges as Cummins adapts its product portfolio for emerging clean technologies.
Raw material costs and supply chain disruptions pose ongoing margin pressure and potential impacts on production and delivery schedules.

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