CMI vs. F, GM, LI, PCAR, MBLY, GPC, MGA, LKQ, RIVN, and STLA
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Ford Motor (F), General Motors (GM), Li Auto (LI), PACCAR (PCAR), Mobileye Global (MBLY), Genuine Parts (GPC), Magna International (MGA), LKQ (LKQ), Rivian Automotive (RIVN), and Stellantis (STLA). These companies are all part of the "auto/tires/trucks" sector.
Ford Motor (NYSE:F) and Cummins (NYSE:CMI) are both large-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, community ranking, risk, analyst recommendations and media sentiment.
58.7% of Ford Motor shares are held by institutional investors. Comparatively, 83.5% of Cummins shares are held by institutional investors. 0.8% of Ford Motor shares are held by insiders. Comparatively, 0.6% of Cummins shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Ford Motor has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Ford Motor has higher revenue and earnings than Cummins. Ford Motor is trading at a lower price-to-earnings ratio than Cummins, indicating that it is currently the more affordable of the two stocks.
Cummins has a net margin of 5.70% compared to Cummins' net margin of 2.21%. Ford Motor's return on equity of 25.38% beat Cummins' return on equity.
Ford Motor received 976 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 74.20% of users gave Ford Motor an outperform vote while only 62.92% of users gave Cummins an outperform vote.
In the previous week, Ford Motor had 4 more articles in the media than Cummins. MarketBeat recorded 36 mentions for Ford Motor and 32 mentions for Cummins. Cummins' average media sentiment score of 0.72 beat Ford Motor's score of 0.54 indicating that Ford Motor is being referred to more favorably in the media.
Ford Motor currently has a consensus target price of $13.74, indicating a potential upside of 11.85%. Cummins has a consensus target price of $284.36, indicating a potential downside of 0.42%. Given Cummins' higher possible upside, research analysts plainly believe Ford Motor is more favorable than Cummins.
Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.9%. Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.4%. Ford Motor pays out 61.9% of its earnings in the form of a dividend. Cummins pays out 49.2% 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. Ford Motor has increased its dividend for 2 consecutive years and Cummins has increased its dividend for 18 consecutive years.
Summary
Cummins beats Ford Motor on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CMI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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