Cummins (CMI) Competitors

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

Does the media favor CMI or CAT?

In the previous week, Caterpillar had 47 more articles in the media than Cummins. MarketBeat recorded 66 mentions for Caterpillar and 19 mentions for Cummins. Cummins' average media sentiment score of 1.27 beat Caterpillar's score of 0.55 indicating that Cummins is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	15 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	27 Very Positive mention(s)	5 Positive mention(s)	18 Neutral mention(s)	8 Negative mention(s)	3 Very Negative mention(s)	Positive

Does the MarketBeat Community believe in CMI or CAT?

Caterpillar received 415 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 62.23% of users gave Caterpillar an outperform vote while only 62.14% of users gave Cummins an outperform vote.

Company	Underperform	Outperform
Cummins	Outperform Votes 801 62.14%	Underperform Votes 488 37.86%
Caterpillar	Outperform Votes 1216 62.23%	Underperform Votes 738 37.77%

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

83.5% of Cummins shares are held by institutional investors. Comparatively, 71.0% of Caterpillar shares are held by institutional investors. 0.4% of Cummins shares are held by company insiders. Comparatively, 0.3% of Caterpillar shares are held by company 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 and earnings, CMI or CAT?

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
Cummins	$34.10B	1.22	$3.95B	$28.17	10.72
Caterpillar	$64.81B	2.39	$10.79B	$22.07	14.68

Which has more risk & volatility, CMI or CAT?

Cummins has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Is CMI or CAT a better dividend stock?

Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.4%. Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.7%. Cummins pays out 25.8% of its earnings in the form of a dividend. Caterpillar pays out 25.6% 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 raised its dividend for 19 consecutive years and Caterpillar has raised its dividend for 30 consecutive years.

Do analysts recommend CMI or CAT?

Cummins presently has a consensus price target of $346.00, suggesting a potential upside of 14.56%. Caterpillar has a consensus price target of $366.00, suggesting a potential upside of 12.99%. Given Cummins' higher possible upside, equities analysts clearly believe Cummins is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cummins	1 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.29
Caterpillar	0 Sell rating(s)	7 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.53

Is CMI or CAT 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
Cummins	11.57%	27.12%	9.27%
Caterpillar	16.65%	58.18%	12.57%

Summary

Caterpillar beats Cummins on 15 of the 21 factors compared between the two stocks.