Cummins (NYSE:CMI) Vs. DE, CAT, PCAR, WAB, TTC, AGCO, OSK, TEX, TRN, and FSS
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Deere & Company (DE), Caterpillar (CAT), PACCAR (PCAR), Westinghouse Air Brake Technologies (WAB), Toro (TTC), AGCO (AGCO), Oshkosh (OSK), Terex (TEX), Trinity Industries (TRN), and Federal Signal (FSS). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Cummins vs.
Caterpillar (NYSE:CAT) and Cummins (NYSE:CMI) are both large-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, community ranking, valuation, analyst recommendations, media sentiment, risk, earnings and profitability.
67.7% of Caterpillar shares are owned by institutional investors. Comparatively, 80.4% of Cummins shares are owned by institutional investors. 0.2% of Caterpillar shares are owned by company insiders. Comparatively, 1.0% 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 will outperform the market over the long term.
Caterpillar presently has a consensus target price of $233.88, suggesting a potential upside of 17.69%. Cummins has a consensus target price of $284.58, suggesting a potential upside of 29.54%. Given Cummins' stronger consensus rating and higher possible upside, analysts plainly believe Cummins is more favorable than Caterpillar.
Caterpillar received 371 more outperform votes than Cummins when rated by MarketBeat users. However, 64.76% of users gave Cummins an outperform vote while only 64.27% of users gave Caterpillar an outperform vote.
Caterpillar has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Cummins has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Caterpillar pays an annual dividend of $4.44 per share and has a dividend yield of 2.2%. Cummins pays an annual dividend of $5.80 per share and has a dividend yield of 2.6%. Caterpillar pays out 47.5% of its earnings in the form of a dividend. Cummins pays out 38.1% 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 increased its dividend for 28 consecutive years and Cummins has increased its dividend for 12 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and lower payout ratio.
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.
In the previous week, Cummins had 5 more articles in the media than Caterpillar. MarketBeat recorded 7 mentions for Cummins and 2 mentions for Caterpillar. Caterpillar's average media sentiment score of 0.19 beat Cummins' score of 0.03 indicating that Caterpillar is being referred to more favorably in the media.
Caterpillar has a net margin of 10.64% compared to Cummins' net margin of 9.32%. Caterpillar's return on equity of 34.41% beat Cummins' return on equity.
Summary
Cummins beats Caterpillar on 11 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding CMI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment >-1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Cummins (NYSE:CMI) vs. Its Competitors
Cummins Competitors List
