CMI vs. F, GM, PCAR, LI, MBLY, GPC, MGA, LKQ, RIVN, and STLA
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Ford Motor (F), General Motors (GM), PACCAR (PCAR), Li Auto (LI), Mobileye Global (MBLY), Genuine Parts (GPC), Magna International (MGA), LKQ (LKQ), Rivian Automotive (RIVN), and Stellantis (STLA). These companies are all part of the "auto/tires/trucks" sector.
Cummins (NYSE:CMI) and Ford Motor (NYSE:F) are both large-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, community ranking, institutional ownership, media sentiment and risk.
Cummins has a net margin of 5.70% compared to Ford Motor's net margin of 2.21%. Cummins' return on equity of 25.38% beat Ford Motor's return on equity.
Cummins presently has a consensus target price of $284.36, suggesting a potential upside of 2.18%. Ford Motor has a consensus target price of $13.89, suggesting a potential upside of 18.89%. Given Ford Motor's stronger consensus rating and higher possible upside, analysts plainly believe Ford Motor is more favorable than Cummins.
Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.4%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 5.1%. Cummins pays out 49.2% of its earnings in the form of a dividend. Ford Motor pays out 61.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
83.5% of Cummins shares are held by institutional investors. Comparatively, 58.7% of Ford Motor shares are held by institutional investors. 0.6% of Cummins shares are held by company insiders. Comparatively, 0.4% of Ford Motor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Cummins has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.
In the previous week, Ford Motor had 7 more articles in the media than Cummins. MarketBeat recorded 32 mentions for Ford Motor and 25 mentions for Cummins. Ford Motor's average media sentiment score of 0.62 beat Cummins' score of 0.60 indicating that Ford Motor is being referred to more favorably in the news media.
Ford Motor has higher revenue and earnings than Cummins. Ford Motor is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.
Ford Motor received 977 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 74.21% of users gave Ford Motor an outperform vote while only 62.92% of users gave Cummins an outperform vote.
Summary
Ford Motor beats Cummins on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CMI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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