CMI vs. LI, GM, F, MBLY, GPC, PCAR, HMC, MGA, LKQ, and RIVN
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Li Auto (LI), General Motors (GM), Ford Motor (F), Mobileye Global (MBLY), Genuine Parts (GPC), PACCAR (PCAR), Honda Motor (HMC), Magna International (MGA), LKQ (LKQ), and Rivian Automotive (RIVN). These companies are all part of the "auto/tires/trucks" sector.
Cummins (NYSE:CMI) and Li Auto (NASDAQ:LI) are both large-cap auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, media sentiment, risk, earnings, dividends, institutional ownership, profitability, valuation and community ranking.
81.8% of Cummins shares are owned by institutional investors. Comparatively, 9.2% of Li Auto shares are owned by institutional investors. 1.1% of Cummins shares are owned by insiders. Comparatively, 48.5% of Li Auto shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Cummins received 723 more outperform votes than Li Auto when rated by MarketBeat users. Likewise, 63.14% of users gave Cummins an outperform vote while only 59.18% of users gave Li Auto an outperform vote.
Li Auto has a net margin of 9.44% compared to Cummins' net margin of 2.16%. Cummins' return on equity of 25.68% beat Li Auto's return on equity.
Cummins has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
In the previous week, Cummins had 13 more articles in the media than Li Auto. MarketBeat recorded 40 mentions for Cummins and 27 mentions for Li Auto. Li Auto's average media sentiment score of 0.66 beat Cummins' score of 0.48 indicating that Li Auto is being referred to more favorably in the news media.
Cummins presently has a consensus price target of $268.91, suggesting a potential downside of 6.02%. Li Auto has a consensus price target of $80.88, suggesting a potential upside of 143.99%. Given Li Auto's stronger consensus rating and higher possible upside, analysts plainly believe Li Auto is more favorable than Cummins.
Li Auto has lower revenue, but higher earnings than Cummins. Li Auto is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.
Summary
Cummins beats Li Auto on 10 of the 18 factors compared between the two stocks.
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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.
Skip ChartThis 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.
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