Cummins (CMI) Competitors

Cummins (NYSE:CMI) and PACCAR (NASDAQ:PCAR) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, media sentiment, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Is CMI or PCAR more profitable?

PACCAR has a net margin of 10.73% compared to Cummins' net margin of 8.20%. Cummins' return on equity of 26.88% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cummins	8.20%	26.88%	9.53%
PACCAR	10.73%	20.79%	8.76%

Is CMI or PCAR a better dividend stock?

Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.1%. PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Cummins pays out 36.2% of its earnings in the form of a dividend. PACCAR pays out 20.0% 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. Cummins has raised its dividend for 19 consecutive years and PACCAR has raised its dividend for 5 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has better valuation and earnings, CMI or PCAR?

PACCAR has lower revenue, but higher earnings than Cummins. PACCAR 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	$34.10B	1.38	$3.95B	$20.10	17.01
PACCAR	$33.66B	1.48	$4.16B	$6.60	14.41

Which has more volatility and risk, CMI or PCAR?

Cummins has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Does the media prefer CMI or PCAR?

In the previous week, Cummins had 23 more articles in the media than PACCAR. MarketBeat recorded 40 mentions for Cummins and 17 mentions for PACCAR. Cummins' average media sentiment score of 1.01 beat PACCAR's score of 0.97 indicating that Cummins is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	29 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
PACCAR	10 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals hold more shares of CMI or PCAR?

83.5% of Cummins shares are held by institutional investors. Comparatively, 64.9% of PACCAR shares are held by institutional investors. 0.4% of Cummins shares are held by company insiders. Comparatively, 2.0% of PACCAR shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Do analysts prefer CMI or PCAR?

Cummins presently has a consensus target price of $361.42, suggesting a potential upside of 5.69%. PACCAR has a consensus target price of $104.59, suggesting a potential upside of 9.95%. Given PACCAR's stronger consensus rating and higher probable upside, analysts clearly believe PACCAR is more favorable than Cummins.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cummins	1 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.33
PACCAR	1 Sell rating(s)	7 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.38

Summary

Cummins beats PACCAR on 12 of the 20 factors compared between the two stocks.