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.
Deere & Company (NYSE:DE) and Cummins (NYSE:CMI) are both large-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, media sentiment, profitability, valuation, earnings, risk, institutional ownership and community ranking.
68.6% of Deere & Company shares are held by institutional investors. Comparatively, 83.5% of Cummins shares are held by institutional investors. 0.3% of Deere & Company shares are held by insiders. Comparatively, 0.6% of Cummins shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
In the previous week, Deere & Company had 3 more articles in the media than Cummins. MarketBeat recorded 20 mentions for Deere & Company and 17 mentions for Cummins. Cummins' average media sentiment score of 0.64 beat Deere & Company's score of 0.63 indicating that Deere & Company is being referred to more favorably in the media.
Deere & Company has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
Deere & Company presently has a consensus target price of $432.92, suggesting a potential upside of 15.52%. Cummins has a consensus target price of $284.36, suggesting a potential upside of 0.93%. Given Cummins' stronger consensus rating and higher possible upside, analysts clearly believe Deere & Company is more favorable than Cummins.
Deere & Company has a net margin of 16.15% compared to Deere & Company's net margin of 5.70%. Cummins' return on equity of 42.26% beat Deere & Company's return on equity.
Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.6%. Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.4%. Deere & Company pays out 17.7% of its earnings in the form of a dividend. Cummins pays out 49.2% 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. Deere & Company has raised its dividend for 3 consecutive years and Cummins has raised its dividend for 18 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Deere & Company received 364 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 65.30% of users gave Deere & Company an outperform vote while only 62.92% of users gave Cummins an outperform vote.
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.
Summary
Deere & Company beats Cummins on 15 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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