TTC vs. CMI, WAB, AGCO, OSK, FSS, TEX, TRN, ALG, GBX, and LNN
Should you be buying Toro stock or one of its competitors? The main competitors of Toro include Cummins (CMI), Westinghouse Air Brake Technologies (WAB), AGCO (AGCO), Oshkosh (OSK), Federal Signal (FSS), Terex (TEX), Trinity Industries (TRN), Alamo Group (ALG), Greenbrier Companies (GBX), and Lindsay (LNN). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Cummins (NYSE:CMI) and Toro (NYSE:TTC) are both large-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, media sentiment, dividends, earnings, valuation and community ranking.
Cummins has higher revenue and earnings than Toro. Cummins is trading at a lower price-to-earnings ratio than Toro, indicating that it is currently the more affordable of the two stocks.
Cummins has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Toro has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Toro has a net margin of 6.00% compared to Toro's net margin of 5.70%. Toro's return on equity of 25.38% beat Cummins' return on equity.
Cummins currently has a consensus price target of $287.18, indicating a potential downside of 1.10%. Toro has a consensus price target of $98.75, indicating a potential upside of 2.07%. Given Cummins' higher possible upside, analysts clearly believe Toro is more favorable than Cummins.
In the previous week, Cummins had 1 more articles in the media than Toro. MarketBeat recorded 12 mentions for Cummins and 11 mentions for Toro. Toro's average media sentiment score of 0.90 beat Cummins' score of 0.86 indicating that Cummins is being referred to more favorably in the media.
83.5% of Cummins shares are held by institutional investors. Comparatively, 88.0% of Toro shares are held by institutional investors. 0.6% of Cummins shares are held by insiders. Comparatively, 1.6% of Toro shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.3%. Toro pays an annual dividend of $1.44 per share and has a dividend yield of 1.5%. Cummins pays out 49.2% of its earnings in the form of a dividend. Toro pays out 56.9% 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 increased its dividend for 19 consecutive years and Toro has increased its dividend for 20 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cummins received 321 more outperform votes than Toro when rated by MarketBeat users. However, 69.61% of users gave Toro an outperform vote while only 62.88% of users gave Cummins an outperform vote.
Summary
Cummins beats Toro on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TTC 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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