Cummins (CMI) Competitors

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

Do institutionals and insiders hold more shares of CMI or PCAR?

83.5% of Cummins shares are owned by institutional investors. Comparatively, 64.9% of PACCAR shares are owned by institutional investors. 0.4% of Cummins shares are owned by insiders. Comparatively, 2.0% of PACCAR shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Does the media prefer CMI or PCAR?

In the previous week, Cummins had 10 more articles in the media than PACCAR. MarketBeat recorded 36 mentions for Cummins and 26 mentions for PACCAR. Cummins' average media sentiment score of 1.62 beat PACCAR's score of 1.44 indicating that Cummins is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	34 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
PACCAR	19 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer CMI or PCAR?

Cummins currently has a consensus target price of $389.29, indicating a potential downside of 5.25%. PACCAR has a consensus target price of $107.68, indicating a potential upside of 5.05%. Given PACCAR's stronger consensus rating and higher probable upside, analysts plainly believe PACCAR is more favorable than Cummins.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cummins	1 Sell rating(s)	6 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.50
PACCAR	0 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	2 Strong Buy rating(s)	2.57

Is CMI or PCAR 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
Cummins	8.72%	26.96%	9.82%
PACCAR	9.88%	18.25%	7.69%

Which has more volatility and risk, CMI or PCAR?

Cummins has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Which has better valuation & earnings, CMI or PCAR?

PACCAR has lower revenue, but higher earnings 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
Cummins	$34.10B	1.66	$3.95B	$21.27	19.32
PACCAR	$33.66B	1.60	$4.16B	$5.84	17.55

Is CMI or PCAR a better dividend stock?

Cummins pays an annual dividend of $8.00 per share and has a dividend yield of 1.9%. PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Cummins pays out 37.6% of its earnings in the form of a dividend. PACCAR pays out 22.6% 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. Cummins has increased its dividend for 19 consecutive years and PACCAR has increased its dividend for 5 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

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