Cummins (CMI) Competitors

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

Do analysts recommend CAT or CMI?

Caterpillar currently has a consensus target price of $380.60, indicating a potential downside of 4.33%. Cummins has a consensus target price of $374.25, indicating a potential upside of 1.84%. Given Cummins' stronger consensus rating and higher possible upside, analysts clearly believe Cummins is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caterpillar	3 Sell rating(s)	7 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.24
Cummins	0 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.38

Which has better valuation and earnings, CAT or CMI?

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
Caterpillar	$67.06B	2.86	$10.34B	$21.57	18.44
Cummins	$34.07B	1.48	$735M	$15.14	24.27

Do insiders & institutionals believe in CAT or CMI?

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

Is CAT or CMI a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.4%. Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.0%. Caterpillar pays out 26.1% of its earnings in the form of a dividend. Cummins pays out 48.1% 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. 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 16.26% 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
Caterpillar	16.26%	59.09%	12.77%
Cummins	6.13%	26.86%	8.85%

Does the media favor CAT or CMI?

In the previous week, Caterpillar had 32 more articles in the media than Cummins. MarketBeat recorded 66 mentions for Caterpillar and 34 mentions for Cummins. Caterpillar's average media sentiment score of 1.02 beat Cummins' score of 0.90 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	49 Very Positive mention(s)	1 Positive mention(s)	8 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Positive
Cummins	22 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, CAT or CMI?

Caterpillar has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Does the MarketBeat Community believe in CAT or CMI?

Caterpillar received 410 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 62.38% of users gave Caterpillar an outperform vote while only 62.37% of users gave Cummins an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1204 62.38%	Underperform Votes 726 37.62%
Cummins	Outperform Votes 794 62.37%	Underperform Votes 479 37.63%

Summary

Caterpillar beats Cummins on 15 of the 21 factors compared between the two stocks.