Cummins (CMI) Competitors

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

Which has better earnings & valuation, CMI or CAT?

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
Cummins	$34.10B	1.48	$3.95B	$28.17	13.02
Caterpillar	$64.81B	2.51	$10.79B	$22.07	15.40

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 1.7%. Cummins pays out 25.8% of its earnings in the form of a dividend. Caterpillar pays out 25.6% 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.

Which has more risk & volatility, CMI or CAT?

Cummins has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Caterpillar has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

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

83.5% of Cummins shares are held by institutional investors. Comparatively, 71.0% of Caterpillar shares are held by institutional investors. 0.6% of Cummins shares are held by company insiders. Comparatively, 0.3% of Caterpillar shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Does the media prefer CMI or CAT?

In the previous week, Caterpillar had 32 more articles in the media than Cummins. MarketBeat recorded 72 mentions for Caterpillar and 40 mentions for Cummins. Caterpillar's average media sentiment score of 1.28 beat Cummins' score of 1.09 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	25 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	58 Very Positive mention(s)	1 Positive mention(s)	7 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 16.65% 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
Cummins	11.57%	27.12%	9.27%
Caterpillar	16.65%	58.18%	12.57%

Do analysts rate CMI or CAT?

Cummins presently has a consensus target price of $386.67, suggesting a potential upside of 5.42%. Caterpillar has a consensus target price of $383.80, suggesting a potential upside of 12.94%. 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	0 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.38
Caterpillar	2 Sell rating(s)	8 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.29

Does the MarketBeat Community believe in CMI or CAT?

Caterpillar received 412 more outperform votes than Cummins when rated by MarketBeat users. However, 62.36% of users gave Cummins an outperform vote while only 62.32% of users gave Caterpillar an outperform vote.

Company	Underperform	Outperform
Cummins	Outperform Votes 797 62.36%	Underperform Votes 481 37.64%
Caterpillar	Outperform Votes 1209 62.32%	Underperform Votes 731 37.68%

Summary

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