CMI vs. NOW

Last updated Jun 9, 2026

CMI (Cummins Inc.) and NOW (ServiceNow, Inc) are both stocks. CMI operates in Specialty Industrial Machinery (Industrials), while NOW operates in Software - Application (Technology). Over the past 10 years, CMI returned 22.34%/yr vs 22.66%/yr for NOW. At a 0.24 correlation, their price movements are largely independent.

Performance

CMI vs. NOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Cummins Inc. (CMI) and ServiceNow, Inc (NOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CMI achieves a 32.64% return, which is significantly higher than NOW's -25.46% return. Both investments have delivered pretty close results over the past 10 years, with CMI having a 22.34% annualized return and NOW not far ahead at 22.66%.

CMI

• 1D: 3.30%
• 1M: -0.70%
• YTD: 32.64%
• 6M: 33.36%
• 1Y: 109.28%
• 3Y*: 46.82%
• 5Y*: 24.12%
• 10Y*: 22.34%

NOW

• 1D: 1.55%
• 1M: 25.24%
• YTD: -25.46%
• 6M: -33.11%
• 1Y: -44.58%
• 3Y*: 2.25%
• 5Y*: 4.20%
• 10Y*: 22.66%

*Multi-year figures are annualized to reflect compound growth (CAGR)

CMI vs. NOW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CMI Cummins Inc.	32.64%	49.36%	48.92%	1.72%	14.09%	-1.68%	30.50%	38.04%	-22.06%	32.74%
NOW ServiceNow, Inc	-25.46%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	58.56%	36.55%	75.40%

Correlation

The correlation between CMI and NOW is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (10Y) Calculated over the trailing 10-year period	0.21
Correlation (All Time) Calculated using the full available price history since Jul 2, 2012	0.24

The correlation between CMI and NOW shifts across timeframes, from -0.13 (1 year) to 0.24 (all time), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap CMI : $93.37B NOW : $118.76B
EPS CMI : $19.27 NOW : $1.68
PE Ratio CMI : 34.90 NOW : 67.97
PEG Ratio CMI : 0.39 NOW : 0.57
PS Ratio CMI : 2.75 NOW : 8.56
PB Ratio CMI : 7.56 NOW : 8.75
Total Revenue (TTM) CMI : $33.89B NOW : $13.96B
Gross Profit (TTM) CMI : $8.60B NOW : $10.69B
EBITDA (TTM) CMI : $4.87B NOW : $2.80B

Return for Risk

CMI vs. NOW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CMI

CMI Risk / Return Rank: 96
CMI Sharpe Ratio Rank: 96
CMI Sortino Ratio Rank: 94
CMI Omega Ratio Rank: 94
CMI Calmar Ratio Rank: 96
CMI Martin Ratio Rank: 97

NOW

NOW Risk / Return Rank: 10
NOW Sharpe Ratio Rank: 7
NOW Sortino Ratio Rank: 9
NOW Omega Ratio Rank: 9
NOW Calmar Ratio Rank: 14
NOW Martin Ratio Rank: 10

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CMI vs. NOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Cummins Inc. (CMI) and ServiceNow, Inc (NOW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CMI	NOW	Difference
Sharpe ratio: Return per unit of total volatility	3.33	-0.90	+4.23
Sortino ratio: Return per unit of downside risk	3.82	-1.24	+5.06
Omega ratio: Gain probability vs. loss probability	1.52	0.84	+0.68
Calmar ratio: Return relative to maximum drawdown	7.22	-0.74	+7.96
Martin ratio: Return relative to average drawdown	26.31	-1.33	+27.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CMI vs. NOW - Sharpe Ratio Comparison

The current CMI Sharpe Ratio is 3.33, which is higher than the NOW Sharpe Ratio of -0.90. The chart below compares the historical Sharpe Ratios of CMI and NOW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CMI	NOW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.33	-0.90	+4.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	0.10	+0.77
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.56	+0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.61	-0.23

Drawdowns

CMI vs. NOW - Drawdown Comparison

The maximum CMI drawdown since its inception was -75.66%, which is greater than NOW's maximum drawdown of -64.54%. Use the drawdown chart below to compare losses from any high point for CMI and NOW.

Drawdown Indicators

	CMI	NOW	Difference
Max Drawdown Largest peak-to-trough decline	-75.66%	-64.54%	-11.12%
Max Drawdown (1Y) Largest decline over 1 year	-15.23%	-60.28%	+45.05%
Max Drawdown (3Y) Largest decline over 3 years	-30.48%	-64.54%	+34.06%
Max Drawdown (5Y) Largest decline over 5 years	-30.48%	-64.54%	+34.06%
Max Drawdown (10Y) Largest decline over 10 years	-44.05%	-64.54%	+20.49%
Current Drawdown Current decline from peak	-5.81%	-51.22%	+45.41%
Average Drawdown Average peak-to-trough decline	-22.23%	-13.74%	-8.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	33.44%	-29.27%

Volatility

CMI vs. NOW - Volatility Comparison

The current volatility for Cummins Inc. (CMI) is 12.18%, while ServiceNow, Inc (NOW) has a volatility of 24.74%. This indicates that CMI experiences smaller price fluctuations and is considered to be less risky than NOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CMI	NOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.18%	24.74%	-12.56%
Volatility (6M) Calculated over the trailing 6-month period	27.86%	46.58%	-18.72%
Volatility (1Y) Calculated over the trailing 1-year period	33.02%	49.79%	-16.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.05%	43.41%	-15.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.26%	40.82%	-12.56%

Dividends

CMI vs. NOW - Dividend Comparison

CMI's dividend yield for the trailing twelve months is around 1.19%, while NOW has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CMI Cummins Inc.	1.19%	1.50%	2.01%	2.71%	2.49%	2.57%	2.33%	2.74%	3.32%	2.38%	2.93%	3.99%
NOW ServiceNow, Inc	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

CMI vs. NOW - Profitability Comparison

The chart below illustrates the profitability comparison between Cummins Inc. and ServiceNow, Inc over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

CMI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Cummins Inc. reported a gross profit of 2.24B and revenue of 8.40B. Therefore, the gross margin over that period was 26.7%.

NOW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported a gross profit of 2.83B and revenue of 3.77B. Therefore, the gross margin over that period was 75.1%.

CMI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Cummins Inc. reported an operating income of 949.00M and revenue of 8.40B, resulting in an operating margin of 11.3%.

NOW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported an operating income of 503.00M and revenue of 3.77B, resulting in an operating margin of 13.3%.

CMI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Cummins Inc. reported a net income of 654.00M and revenue of 8.40B, resulting in a net margin of 7.8%.

NOW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported a net income of 469.00M and revenue of 3.77B, resulting in a net margin of 12.4%.

Frequently Asked Questions

Can I hold both CMI and NOW in my portfolio?

CMI and NOW have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CMI or NOW?

NOW has higher volatility (24.74%) compared to CMI (12.18%). In terms of maximum drawdown, CMI dropped -75.66% vs NOW's -64.54%.

Which has better risk-adjusted returns?

CMI currently has the higher Sharpe Ratio (3.33 vs -0.90), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.