Cummins (CMI) Competitors

PACCAR (NASDAQ:PCAR) and Cummins (NYSE:CMI) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, media sentiment, profitability, risk, institutional ownership and valuation.

Does the media refer more to PCAR or CMI?

In the previous week, Cummins had 13 more articles in the media than PACCAR. MarketBeat recorded 29 mentions for Cummins and 16 mentions for PACCAR. Cummins' average media sentiment score of 1.48 beat PACCAR's score of 0.97 indicating that Cummins is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PACCAR	8 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Cummins	26 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders believe in PCAR or CMI?

64.9% of PACCAR shares are owned by institutional investors. Comparatively, 83.5% of Cummins shares are owned by institutional investors. 2.0% of PACCAR shares are owned by company insiders. Comparatively, 0.4% of Cummins shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Is PCAR or CMI more profitable?

PACCAR has a net margin of 9.88% compared to Cummins' net margin of 8.72%. Cummins' return on equity of 26.96% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PACCAR	9.88%	18.25%	7.69%
Cummins	8.72%	26.96%	9.82%

Is PCAR or CMI a better dividend stock?

PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Cummins pays an annual dividend of $8.00 per share and has a dividend yield of 1.9%. PACCAR pays out 22.6% of its earnings in the form of a dividend. Cummins pays out 37.6% 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. PACCAR has raised its dividend for 5 consecutive years and Cummins has raised its dividend for 19 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has stronger valuation & earnings, PCAR or CMI?

PACCAR has higher earnings, but lower revenue than Cummins. PACCAR is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$33.66B	1.49	$4.16B	$5.84	16.30
Cummins	$34.10B	1.72	$3.95B	$21.27	20.04

Do analysts rate PCAR or CMI?

PACCAR presently has a consensus price target of $107.59, suggesting a potential upside of 12.99%. Cummins has a consensus price target of $397.43, suggesting a potential downside of 6.75%. Given PACCAR's stronger consensus rating and higher probable upside, equities analysts plainly believe PACCAR is more favorable than Cummins.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	0 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	2 Strong Buy rating(s)	2.60
Cummins	1 Sell rating(s)	6 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.53

Which has more volatility and risk, PCAR or CMI?

PACCAR has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Summary

Cummins beats PACCAR on 13 of the 20 factors compared between the two stocks.