Cummins (CMI) Competitors

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.

Is CMI or LI more profitable?

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.

Company	Net Margins	Return on Equity	Return on Assets
Cummins	8.37%	25.94%	8.86%
Li Auto	-1.90%	-2.32%	-1.25%

Do analysts rate CMI or LI?

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.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cummins	0 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.29
Li Auto	0 Sell rating(s)	0 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the media prefer CMI or LI?

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.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	2 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral
Li Auto	4 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community prefer CMI or LI?

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.

Company	Underperform	Outperform
Cummins	Outperform Votes 772 63.43%	Underperform Votes 445 36.57%
Li Auto	Outperform Votes 52 59.77%	Underperform Votes 35 40.23%

Which has more volatility and risk, CMI or LI?

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.

Which has preferable valuation and earnings, CMI or LI?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cummins	$28.07 billion	1.14	$2.15 billion	$17.74	12.78
Li Auto	$6.57 billion	5.04	-$291.74 million	-$0.17	-186.93

Do insiders & institutionals believe in CMI or LI?

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.