CMI vs. LI, MBLY, PCAR, CNHI, MGA, LKQ, GM, STLA, RIVN, and NIO
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Li Auto (LI), Mobileye Global (MBLY), PACCAR (PCAR), CNH Industrial (CNHI), Magna International (MGA), LKQ (LKQ), General Motors (GM), Stellantis (STLA), Rivian Automotive (RIVN), and NIO (NIO). These companies are all part of the "auto/tires/trucks" sector.
Cummins vs.
Cummins (NYSE:CMI) and Li Auto (NASDAQ:LI) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, media sentiment, earnings, dividends, analyst recommendations, risk, community ranking, valuation and institutional ownership.
Cummins has a net margin of 8.37% compared to Li Auto's net margin of -1.90%. Cummins' return on equity of 25.94% beat Li Auto's return on equity.
Cummins presently has a consensus target price of $254.25, suggesting a potential upside of 12.19%. Li Auto has a consensus target price of $35.74, suggesting a potential upside of 12.45%. Given Li Auto's stronger consensus rating and higher probable upside, analysts clearly believe Li Auto is more favorable than Cummins.
In the previous week, Li Auto had 3 more articles in the media than Cummins. MarketBeat recorded 10 mentions for Li Auto and 7 mentions for Cummins. Li Auto's average media sentiment score of 0.55 beat Cummins' score of 0.41 indicating that Li Auto is being referred to more favorably in the news media.
Cummins received 720 more outperform votes than Li Auto when rated by MarketBeat users. Likewise, 63.43% of users gave Cummins an outperform vote while only 59.77% of users gave Li Auto an outperform vote.
Cummins has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Li Auto has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Cummins has higher revenue and earnings than Li Auto. 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.
80.9% of Cummins shares are held by institutional investors. Comparatively, 21.0% of Li Auto shares are held by institutional investors. 1.1% of Cummins shares are held by insiders. Comparatively, 48.5% of Li Auto shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Cummins beats Li Auto on 11 of the 18 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.
Skip ChartMedia 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.
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