CMI vs. DE, PCAR, WAB, TTC, AGCO, OSK, FSS, TEX, TRN, and ALG
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Deere & Company (DE), PACCAR (PCAR), Westinghouse Air Brake Technologies (WAB), Toro (TTC), AGCO (AGCO), Oshkosh (OSK), Federal Signal (FSS), Terex (TEX), Trinity Industries (TRN), and Alamo Group (ALG). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Cummins (NYSE:CMI) and Deere & Company (NYSE:DE) are both large-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their media sentiment, dividends, institutional ownership, earnings, valuation, community ranking, profitability, analyst recommendations and risk.
Deere & Company received 365 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 65.25% of users gave Deere & Company an outperform vote while only 62.88% of users gave Cummins an outperform vote.
In the previous week, Deere & Company had 9 more articles in the media than Cummins. MarketBeat recorded 20 mentions for Deere & Company and 11 mentions for Cummins. Cummins' average media sentiment score of 0.92 beat Deere & Company's score of 0.19 indicating that Cummins is being referred to more favorably in the media.
Cummins presently has a consensus price target of $287.18, suggesting a potential downside of 1.10%. Deere & Company has a consensus price target of $426.71, suggesting a potential upside of 10.39%. Given Deere & Company's stronger consensus rating and higher possible upside, analysts clearly believe Deere & Company is more favorable than Cummins.
Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.3%. Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.5%. Cummins pays out 49.2% of its earnings in the form of a dividend. Deere & Company pays out 17.7% 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.
Deere & Company has a net margin of 16.15% compared to Cummins' net margin of 5.70%. Deere & Company's return on equity of 42.26% beat Cummins' return on equity.
Deere & Company has higher revenue and earnings than Cummins. Deere & Company is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.
83.5% of Cummins shares are held by institutional investors. Comparatively, 68.6% of Deere & Company shares are held by institutional investors. 0.6% of Cummins shares are held by insiders. Comparatively, 0.3% of Deere & Company shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Cummins has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Deere & Company has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
Summary
Deere & Company beats Cummins on 14 of the 20 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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