Cummins (CMI) Competitors

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

Which has more volatility & risk, PCAR or CMI?

PACCAR has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Cummins has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Does the media refer more to PCAR or CMI?

In the previous week, Cummins had 16 more articles in the media than PACCAR. MarketBeat recorded 34 mentions for Cummins and 18 mentions for PACCAR. PACCAR's average media sentiment score of 1.16 beat Cummins' score of 1.12 indicating that PACCAR is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PACCAR	14 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Cummins	27 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Do analysts rate PCAR or CMI?

PACCAR currently has a consensus target price of $104.59, suggesting a potential upside of 7.52%. Cummins has a consensus target price of $358.08, suggesting a potential upside of 7.91%. Given Cummins' higher possible upside, analysts plainly believe Cummins is more favorable than PACCAR.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	1 Sell rating(s)	7 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.38
Cummins	1 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.33

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 $7.28 per share and has a dividend yield of 2.2%. PACCAR pays out 20.0% 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. 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.

Do institutionals and insiders hold more shares of 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 insiders. Comparatively, 0.4% of Cummins shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term 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	1.52	$4.16B	$6.60	14.74
Cummins	$34.10B	1.34	$3.95B	$20.10	16.51

Is PCAR or CMI more profitable?

PACCAR has a net margin of 10.73% compared to Cummins' net margin of 8.20%. Cummins' return on equity of 26.88% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PACCAR	10.73%	20.79%	8.76%
Cummins	8.20%	26.88%	9.53%

Summary

Cummins beats PACCAR on 12 of the 20 factors compared between the two stocks.