CMI vs. TER
CMI (Cummins Inc.) and TER (Teradyne, Inc.) are both stocks. CMI operates in Specialty Industrial Machinery (Industrials), while TER operates in Semiconductor Equipment & Materials (Technology). Over the past 10 years, CMI returned 22.42%/yr vs 36.09%/yr for TER. At a 0.38 correlation, their price movements are largely independent.
Performance
CMI vs. TER - Performance Comparison
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Returns By Period
In the year-to-date period, CMI achieves a 30.06% return, which is significantly lower than TER's 108.47% return. Over the past 10 years, CMI has underperformed TER with an annualized return of 22.42%, while TER has yielded a comparatively higher 36.09% annualized return.
CMI
- 1D
- 0.59%
- 1M
- -6.75%
- YTD
- 30.06%
- 6M
- 30.16%
- 1Y
- 106.36%
- 3Y*
- 43.37%
- 5Y*
- 24.29%
- 10Y*
- 22.42%
TER
- 1D
- 5.72%
- 1M
- 11.00%
- YTD
- 108.47%
- 6M
- 108.68%
- 1Y
- 370.53%
- 3Y*
- 54.13%
- 5Y*
- 26.29%
- 10Y*
- 36.09%
CMI vs. TER - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CMI Cummins Inc. | 30.06% | 49.36% | 48.92% | 1.72% | 14.09% | -1.68% | 30.50% | 38.04% | -22.06% | 32.74% |
TER Teradyne, Inc. | 108.47% | 54.39% | 16.51% | 24.78% | -46.35% | 36.81% | 76.73% | 118.93% | -24.37% | 66.16% |
Correlation
The correlation between CMI and TER is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.52 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.51 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.46 |
Correlation (All Time) Calculated using the full available price history since Mar 11, 1987 | 0.38 |
Over the past year, CMI and TER have become more correlated (0.64) than their long-term average of 0.38, meaning their price movements have been converging.
Fundamentals
CMI:
$91.55B
TER:
$63.56B
CMI:
$19.27
TER:
$5.38
CMI:
34.23
TER:
75.00
CMI:
2.70
TER:
16.91
CMI:
7.41
TER:
20.22
CMI:
$33.89B
TER:
$3.79B
CMI:
$8.60B
TER:
$2.23B
CMI:
$4.87B
TER:
$1.11B
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Return for Risk
CMI vs. TER — Risk / Return Rank
CMI
TER
CMI vs. TER - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Cummins Inc. (CMI) and Teradyne, Inc. (TER). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| CMI | TER | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.39 | ||
| Sortino ratioReturn per unit of downside risk | -0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.64 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 7.03 | 13.97 | -6.95 |
| Martin ratioReturn relative to average drawdown | 24.89 | 49.81 | -24.92 |
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Drawdowns
CMI vs. TER - Drawdown Comparison
The maximum CMI drawdown since its inception was -75.66%, smaller than the maximum TER drawdown of -97.30%. Use the drawdown chart below to compare losses from any high point for CMI and TER.
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Drawdown Indicators
| CMI | TER | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -75.66% | -97.30% | +21.64% |
Max Drawdown (1Y)Largest decline over 1 year | -15.23% | -26.73% | +11.50% |
Max Drawdown (3Y)Largest decline over 3 years | -30.48% | -58.18% | +27.70% |
Max Drawdown (5Y)Largest decline over 5 years | -30.48% | -59.12% | +28.64% |
Max Drawdown (10Y)Largest decline over 10 years | -44.05% | -59.12% | +15.07% |
Current DrawdownCurrent decline from peak | -7.65% | -3.52% | -4.13% |
Average DrawdownAverage peak-to-trough decline | -22.22% | -58.67% | +36.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.30% | 7.49% | -3.19% |
Volatility
CMI vs. TER - Volatility Comparison
The current volatility for Cummins Inc. (CMI) is 13.69%, while Teradyne, Inc. (TER) has a volatility of 25.00%. This indicates that CMI experiences smaller price fluctuations and is considered to be less risky than TER based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CMI | TER | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.69% | 25.00% | -11.31% |
Volatility (6M)Calculated over the trailing 6-month period | 28.36% | 53.10% | -24.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 33.70% | 67.20% | -33.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 28.19% | 50.20% | -22.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.33% | 45.31% | -16.98% |
Dividends
CMI vs. TER - Dividend Comparison
CMI's dividend yield for the trailing twelve months is around 1.21%, more than TER's 0.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CMI Cummins Inc. | 1.21% | 1.50% | 2.01% | 2.71% | 2.49% | 2.57% | 2.33% | 2.74% | 3.32% | 2.38% | 2.93% | 3.99% |
TER Teradyne, Inc. | 0.12% | 0.25% | 0.38% | 0.41% | 0.50% | 0.24% | 0.33% | 0.53% | 1.15% | 0.67% | 0.94% | 1.16% |
Financials
CMI vs. TER - Financials Comparison
This section allows you to compare key financial metrics between Cummins Inc. and Teradyne, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
CMI vs. TER - Profitability Comparison
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%.
TER - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported a gross profit of 780.95M and revenue of 1.28B. Therefore, the gross margin over that period was 60.9%.
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%.
TER - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported an operating income of 473.00M and revenue of 1.28B, resulting in an operating margin of 36.9%.
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%.
TER - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported a net income of 398.91M and revenue of 1.28B, resulting in a net margin of 31.1%.
Frequently Asked Questions
CMI and TER have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TER has higher volatility (25.00%) compared to CMI (13.69%). In terms of maximum drawdown, CMI dropped -75.66% vs TER's -97.30%.
TER currently has the higher Sharpe Ratio (5.56 vs 3.17), 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.
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