CMI vs. F, LI, GM, MBLY, GPC, PCAR, HMC, MGA, LKQ, and ALV
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Ford Motor (F), Li Auto (LI), General Motors (GM), Mobileye Global (MBLY), Genuine Parts (GPC), PACCAR (PCAR), Honda Motor (HMC), Magna International (MGA), LKQ (LKQ), and Autoliv (ALV). 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 better stock? We will compare the two businesses based on the strength of their media sentiment, dividends, analyst recommendations, earnings, community ranking, profitability, valuation, institutional ownership and risk.
Cummins currently has a consensus price target of $282.55, suggesting a potential upside of 0.64%. Ford Motor has a consensus price target of $13.74, suggesting a potential upside of 10.50%. Given Ford Motor's higher probable upside, analysts plainly believe Ford Motor is more favorable than Cummins.
Cummins has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.
83.5% of Cummins shares are owned by institutional investors. Comparatively, 58.7% of Ford Motor shares are owned by institutional investors. 0.6% of Cummins shares are owned by company insiders. Comparatively, 0.8% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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 4.8%. 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.
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 978 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 74.20% of users gave Ford Motor an outperform vote while only 62.91% of users gave Cummins an outperform vote.
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.
In the previous week, Cummins and Cummins both had 29 articles in the media. Cummins' average media sentiment score of 0.33 beat Ford Motor's score of 0.17 indicating that Cummins is being referred to more favorably in the media.
Summary
Cummins beats Ford Motor on 11 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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