Richtech Robotics (NASDAQ:RR – Get Free Report) and Cummins (NYSE:CMI – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Volatility & Risk
Richtech Robotics has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500. Comparatively, Cummins has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Earnings and Valuation
This table compares Richtech Robotics and Cummins”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richtech Robotics | $5.05 million | 63.04 | -$15.75 million | ($0.14) | -10.57 |
| Cummins | $33.67 billion | 2.66 | $2.84 billion | $19.27 | 33.65 |
Cummins has higher revenue and earnings than Richtech Robotics. Richtech Robotics is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.0% of Richtech Robotics shares are owned by institutional investors. Comparatively, 83.5% of Cummins shares are owned by institutional investors. 19.8% of Richtech Robotics shares are owned by insiders. Comparatively, 0.3% of Cummins shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Richtech Robotics and Cummins, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Richtech Robotics | 1 | 0 | 1 | 0 | 2.00 |
| Cummins | 0 | 4 | 11 | 0 | 2.73 |
Richtech Robotics currently has a consensus target price of $6.00, indicating a potential upside of 305.41%. Cummins has a consensus target price of $740.07, indicating a potential upside of 14.13%. Given Richtech Robotics’ higher probable upside, analysts plainly believe Richtech Robotics is more favorable than Cummins.
Profitability
This table compares Richtech Robotics and Cummins’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Richtech Robotics | -417.41% | -10.68% | -10.47% |
| Cummins | 7.89% | 25.25% | 9.77% |
Summary
Cummins beats Richtech Robotics on 11 of the 14 factors compared between the two stocks.
About Richtech Robotics
Richtech Robotics Inc. develops, manufactures, deploys, and sells robotic solutions for automation in the service industry. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as ADAM and ARM worker robots; delivery robots, including Matradee, Matradee X, Matradee L, Richie, and Robbie; and cleaning robots comprising DUST-E SX, and DUST-E MX, as well as accessories, such as bus tubs, cup holders, magnetic tray cases, smartwatches, table location systems, and tray covers. It primarily serves restaurants, hotels, casinos, senior living centers, factories, and retail centers, as well as hospitals, and movie theaters. The company was formerly known as Richtech Creative Displays LLC and changed its name to Richtech Robotics Inc. on June 22, 2022. Richtech Robotics Inc. was incorporated in 2016 and is headquartered in Las Vegas, Nevada.
About Cummins
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines. It provides power generation systems, horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. Additionally, it offers filtration, aftertreatment, controls systems, air handling systems, and electric power generation systems, and batteries. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
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