Cummins (CMI) Competitors

Caterpillar (NYSE:CAT) and Cummins (NYSE:CMI) are both large-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, community ranking, risk, media sentiment, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Do analysts recommend CAT or CMI?

Caterpillar presently has a consensus price target of $372.92, suggesting a potential upside of 3.34%. Cummins has a consensus price target of $357.25, suggesting a potential upside of 10.13%. Given Cummins' higher possible upside, analysts plainly believe Cummins is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.73
Cummins	1 Sell rating(s)	7 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.31

Do insiders and institutionals have more ownership in CAT or CMI?

71.0% of Caterpillar shares are owned by institutional investors. Comparatively, 83.5% of Cummins shares are owned by institutional investors. 0.3% of Caterpillar shares are owned by company insiders. Comparatively, 0.4% of Cummins shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Which has preferable valuation and earnings, CAT or CMI?

Caterpillar has higher revenue and earnings than Cummins. Cummins is trading at a lower price-to-earnings ratio than Caterpillar, 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
Caterpillar	$63.26B	2.69	$10.79B	$20.52	17.59
Cummins	$33.87B	1.32	$3.95B	$20.10	16.14

Is CAT or CMI a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.6%. Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.2%. Caterpillar pays out 27.5% of its earnings in the form of a dividend. Cummins pays out 36.2% 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. Caterpillar has raised its dividend for 30 consecutive years and Cummins has raised its dividend for 19 consecutive years.

Does the media favor CAT or CMI?

In the previous week, Caterpillar had 27 more articles in the media than Cummins. MarketBeat recorded 54 mentions for Caterpillar and 27 mentions for Cummins. Cummins' average media sentiment score of 1.16 beat Caterpillar's score of 1.13 indicating that Cummins is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	44 Very Positive mention(s)	0 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
Cummins	22 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, CAT or CMI?

Caterpillar has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Is CAT or CMI more profitable?

Caterpillar has a net margin of 16.65% compared to Cummins' net margin of 11.57%. Caterpillar's return on equity of 58.18% beat Cummins' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Caterpillar	16.65%	58.18%	12.57%
Cummins	11.57%	27.12%	9.27%

Does the MarketBeat Community believe in CAT or CMI?

Caterpillar received 415 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 62.21% of users gave Caterpillar an outperform vote while only 62.21% of users gave Cummins an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1220 62.21%	Underperform Votes 741 37.79%
Cummins	Outperform Votes 805 62.21%	Underperform Votes 489 37.79%

Summary

Caterpillar beats Cummins on 17 of the 22 factors compared between the two stocks.