CMI vs. F, GM, LI, MBLY, GPC, HMC, PCAR, MGA, LKQ, and STLA
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Ford Motor (F), General Motors (GM), Li Auto (LI), Mobileye Global (MBLY), Genuine Parts (GPC), Honda Motor (HMC), PACCAR (PCAR), Magna International (MGA), LKQ (LKQ), and Stellantis (STLA). These companies are all part of the "auto/tires/trucks" sector.
Cummins (NYSE:CMI) and Ford Motor (NYSE:F) are both large-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, dividends, risk, media sentiment, valuation, earnings, profitability and institutional ownership.
83.5% of Cummins shares are owned by institutional investors. Comparatively, 58.7% of Ford Motor shares are owned by institutional investors. 0.6% of Cummins shares are owned by company insiders. Comparatively, 0.4% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Cummins has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Ford Motor has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.
Ford Motor received 977 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 74.25% of users gave Ford Motor an outperform vote while only 63.06% of users gave Cummins an outperform vote.
In the previous week, Ford Motor had 14 more articles in the media than Cummins. MarketBeat recorded 31 mentions for Ford Motor and 17 mentions for Cummins. Cummins' average media sentiment score of 0.46 beat Ford Motor's score of 0.42 indicating that Cummins is being referred to more favorably in the media.
Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.3%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.6%. Cummins pays out 129.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ford Motor pays out 55.6% of its earnings in the form of a dividend. Ford Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cummins currently has a consensus price target of $279.70, suggesting a potential downside of 4.35%. Ford Motor has a consensus price target of $13.82, suggesting a potential upside of 6.72%. Given Ford Motor's higher probable upside, analysts clearly believe Ford Motor is more favorable than Cummins.
Ford Motor has higher revenue and earnings than Cummins. Ford Motor is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.
Ford Motor has a net margin of 2.47% compared to Cummins' net margin of 2.16%. Cummins' return on equity of 25.68% beat Ford Motor's return on equity.
Summary
Cummins and Ford Motor tied by winning 10 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.
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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