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 companies based on the strength of their analyst recommendations, valuation, dividends, media sentiment, institutional ownership, community ranking, profitability, earnings and risk.

Which has stronger 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	2.50	$10.79B	$22.07	15.38
Cummins	$34.10B	1.31	$3.95B	$28.17	11.50

Do analysts prefer CAT or CMI?

Caterpillar presently has a consensus target price of $383.80, suggesting a potential upside of 13.10%. Cummins has a consensus target price of $389.50, suggesting a potential upside of 20.24%. Given Cummins' higher probable upside, analysts plainly believe Cummins is more favorable than Caterpillar.

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	0 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.38

Does the media favor CAT or CMI?

In the previous week, Caterpillar had 24 more articles in the media than Cummins. MarketBeat recorded 52 mentions for Caterpillar and 28 mentions for Cummins. Caterpillar's average media sentiment score of 1.32 beat Cummins' score of 1.09 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	43 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
Cummins	24 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is CAT or CMI a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.7%. Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.2%. 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.

Which has more volatility and risk, CAT or CMI?

Caterpillar has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Does the MarketBeat Community believe in CAT or CMI?

Caterpillar received 413 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 62.29% of users gave Caterpillar an outperform vote while only 62.25% of users gave Cummins an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1211 62.29%	Underperform Votes 733 37.71%
Cummins	Outperform Votes 798 62.25%	Underperform Votes 484 37.75%

Do insiders and institutionals hold more shares of 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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%

Summary

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