Timken (TKR) Competitors

Timken (NYSE:TKR) and Cummins (NYSE:CMI) are related companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, media sentiment, risk, valuation, earnings and dividends.

Is TKR or CMI a better dividend stock?

Timken pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.2%. Timken pays out 30.2% of its earnings in the form of a dividend. Cummins pays out 36.2% 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. Timken has raised its dividend for 12 consecutive years and Cummins has raised its dividend for 19 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

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

89.1% of Timken shares are owned by institutional investors. Comparatively, 83.5% of Cummins shares are owned by institutional investors. 8.4% of Timken shares are owned by company insiders. Comparatively, 0.4% of Cummins shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Which has more risk and volatility, TKR or CMI?

Timken has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Do analysts prefer TKR or CMI?

Timken currently has a consensus price target of $79.00, indicating a potential upside of 2.54%. Cummins has a consensus price target of $358.08, indicating a potential upside of 8.35%. Given Cummins' higher possible upside, analysts plainly believe Cummins is more favorable than Timken.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Timken	0 Sell rating(s)	6 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.40
Cummins	1 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.33

Is TKR or CMI more profitable?

Cummins has a net margin of 8.20% compared to Timken's net margin of 7.24%. Cummins' return on equity of 26.88% beat Timken's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Timken	7.24%	12.62%	5.81%
Cummins	8.20%	26.88%	9.53%

Does the media prefer TKR or CMI?

In the previous week, Cummins had 41 more articles in the media than Timken. MarketBeat recorded 42 mentions for Cummins and 1 mentions for Timken. Timken's average media sentiment score of 1.74 beat Cummins' score of 0.90 indicating that Timken is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Timken	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Cummins	25 Very Positive mention(s)	2 Positive mention(s)	11 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has better earnings and valuation, TKR or CMI?

Cummins has higher revenue and earnings than Timken. Cummins is trading at a lower price-to-earnings ratio than Timken, 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
Timken	$4.57B	1.18	$352.70M	$4.64	16.60
Cummins	$34.10B	1.34	$3.95B	$20.10	16.44

Summary

Cummins beats Timken on 12 of the 19 factors compared between the two stocks.