CMI vs GTX: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: GTX is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. CMI and GTX share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined CMI and GTX exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Cummins Inc. is one of the world's largest independent makers of diesel and natural gas engines, and it operates across five segments: Engine, Components, Distribution, Power Systems, and Accelera (its low-carbon and electrification arm). Its products power heavy- and medium-duty trucks, buses, construction and mining equipment, and standby and prime power generators, and it runs a large aftermarket parts and service network. The Distribution segment is the largest by revenue, while Power Systems has been the fastest-growing thanks to demand for backup power at data centers.

Full CMI guide

Garrett Motion Inc. designs and manufactures turbochargers, electric and hybrid boosting systems, and related powertrain technologies for passenger cars, commercial vehicles, and industrial applications. Spun out of Honeywell in 2018, it is one of a small handful of Tier-1 turbocharger suppliers (alongside BorgWarner, IHI, and Mitsubishi Heavy Industries) that together control roughly two-thirds of global original-equipment turbo supply. The company sells to major automakers and increasingly pushes into electrified boosting for hybrids, fuel-cell compressors, and industrial and cooling technologies as it tries to diversify beyond the traditional combustion engine.

Full GTX guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• CMI drivers: Data center backup power; North American truck cycle.
• GTX drivers: Cash generation and capital return; Electrified and hybrid boosting.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Cummins is exposed to the industrial and freight cycle, so a downturn in truck demand or construction spending can cut engine volumes and margins quickly. For GTX, garrett's core turbocharger business is tied to internal-combustion and hybrid vehicles, which face long-term decline as battery-electric adoption grows, creating a secular headwind for its largest revenue source.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick CMI if you believe its drivers more; GTX if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the CMI and GTX guides.

CMI. Cummins trades at a premium to its historical multiple after a large 2025-2026 run tied to data center power demand. The forward P/E near 23x sits well below the trailing figure, reflecting expected earnings growth as guidance was raised. The dividend is modest in yield but backed by a long record of annual increases.

GTX. As of July 2026, Garrett trades around a mid-teens forward price-to-earnings multiple, reflecting its profile as a cash-generative but slower-growth auto supplier rather than a high-multiple growth name. The heavy buyback program has reduced shares outstanding to roughly 188 million, a large reduction since 2023, so per-share metrics benefit even when total revenue grows only modestly. Figures are approximate and reference the July 2026 date.

Headline figures (approximate, JUNE 2026): CMI shows revenue (fy2025) ~$33.7B, revenue (q1 2026) ~$8.4B, up ~3% YoY, net income (fy2025) ~$2.8B, market cap ~$96B; GTX shows revenue (ttm) ~$3.7 billion, 2026 revenue guidance ~$3.6 to $3.9 billion, q1 2026 net sales ~$985 million, market cap ~$3.6 billion.

CMI and GTX are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined CMI and GTX exposure against your real portfolio. It is not an investment adviser.