Cummins (CMI) Competitors

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

Which has more risk & volatility, CMI or CAT?

Cummins has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Does the MarketBeat Community favor CMI or CAT?

Caterpillar received 406 more outperform votes than Cummins when rated by MarketBeat users. However, 62.50% of users gave Cummins an outperform vote while only 62.36% of users gave Caterpillar an outperform vote.

Company	Underperform	Outperform
Cummins	Outperform Votes 790 62.50%	Underperform Votes 474 37.50%
Caterpillar	Outperform Votes 1196 62.36%	Underperform Votes 722 37.64%

Does the media refer more to CMI or CAT?

In the previous week, Caterpillar had 20 more articles in the media than Cummins. MarketBeat recorded 54 mentions for Caterpillar and 34 mentions for Cummins. Cummins' average media sentiment score of 1.04 beat Caterpillar's score of 0.89 indicating that Cummins is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	23 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	37 Very Positive mention(s)	4 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is CMI or CAT more profitable?

Caterpillar has a net margin of 16.26% compared to Cummins' net margin of 6.13%. Caterpillar's return on equity of 59.09% beat Cummins' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cummins	6.13%	26.86%	8.85%
Caterpillar	16.26%	59.09%	12.77%

Do institutionals & insiders hold more shares of CMI or CAT?

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

Do analysts rate CMI or CAT?

Cummins presently has a consensus target price of $337.67, indicating a potential downside of 6.45%. Caterpillar has a consensus target price of $365.33, indicating a potential downside of 4.22%. Given Caterpillar's higher probable upside, analysts plainly believe Caterpillar is more favorable than Cummins.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cummins	2 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.23
Caterpillar	4 Sell rating(s)	7 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.12

Which has stronger valuation & earnings, CMI or CAT?

Caterpillar has higher revenue and earnings than Cummins. Caterpillar is trading at a lower price-to-earnings ratio than Cummins, 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
Cummins	$34.07B	1.45	$735M	$15.14	23.84
Caterpillar	$65.66B	2.80	$10.34B	$21.57	17.68

Is CMI or CAT a better dividend stock?

Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.0%. Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.5%. Cummins pays out 48.1% of its earnings in the form of a dividend. Caterpillar pays out 26.1% 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 raised its dividend for 19 consecutive years and Caterpillar has raised its dividend for 30 consecutive years.

Summary

Caterpillar beats Cummins on 14 of the 21 factors compared between the two stocks.