Cummins (CMI) Competitors

Caterpillar (NYSE:CAT) and Cummins (NYSE:CMI) are both large-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, media sentiment, community ranking, profitability, institutional ownership, earnings and valuation.

Which has preferable valuation & earnings, CAT or CMI?

Caterpillar has higher revenue and earnings than Cummins. Cummins is trading at a lower price-to-earnings ratio than Caterpillar, 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
Caterpillar	$64.81B	2.20	$10.79B	$22.07	13.53
Cummins	$34.10B	1.17	$3.95B	$28.17	10.28

Does the media favor CAT or CMI?

In the previous week, Caterpillar had 41 more articles in the media than Cummins. MarketBeat recorded 79 mentions for Caterpillar and 38 mentions for Cummins. Cummins' average media sentiment score of 0.94 beat Caterpillar's score of 0.84 indicating that Cummins is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	44 Very Positive mention(s)	5 Positive mention(s)	16 Neutral mention(s)	8 Negative mention(s)	1 Very Negative mention(s)	Positive
Cummins	22 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	4 Negative mention(s)	2 Very Negative mention(s)	Positive

Which has more risk and volatility, CAT or CMI?

Caterpillar has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Is CAT or CMI a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.9%. Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.5%. Caterpillar pays out 25.6% of its earnings in the form of a dividend. Cummins pays out 25.8% 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. Caterpillar has increased its dividend for 30 consecutive years and Cummins has increased its dividend for 19 consecutive years.

Is CAT or CMI more profitable?

Caterpillar has a net margin of 16.65% compared to Cummins' net margin of 11.57%. Caterpillar's return on equity of 58.18% beat Cummins' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Caterpillar	16.65%	58.18%	12.57%
Cummins	11.57%	27.12%	9.27%

Do institutionals and insiders have more ownership in CAT or CMI?

71.0% of Caterpillar shares are owned by institutional investors. Comparatively, 83.5% of Cummins shares are owned by institutional investors. 0.3% of Caterpillar shares are owned by company insiders. Comparatively, 0.6% of Cummins shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Do analysts prefer CAT or CMI?

Caterpillar currently has a consensus price target of $365.87, suggesting a potential upside of 22.57%. Cummins has a consensus price target of $346.50, suggesting a potential upside of 19.67%. Given Caterpillar's stronger consensus rating and higher probable upside, research analysts clearly believe Caterpillar is more favorable than Cummins.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caterpillar	2 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.39
Cummins	1 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.23

Does the MarketBeat Community favor CAT or CMI?

Caterpillar received 414 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 62.32% of users gave Caterpillar an outperform vote while only 62.11% of users gave Cummins an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1214 62.32%	Underperform Votes 734 37.68%
Cummins	Outperform Votes 800 62.11%	Underperform Votes 488 37.89%

Summary

Caterpillar beats Cummins on 16 of the 21 factors compared between the two stocks.