CNH GLOBAL N V Foreign (CNH) Competitors

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

Which has more volatility and risk, CMI or CNH?

Cummins has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, CNH GLOBAL N V Foreign has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Do insiders and institutionals hold more shares of CMI or CNH?

83.5% of Cummins shares are owned by institutional investors. Comparatively, 59.9% of CNH GLOBAL N V Foreign shares are owned by institutional investors. 0.6% of Cummins shares are owned by company insiders. Comparatively, 1.0% of CNH GLOBAL N V Foreign shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Which has preferable valuation and earnings, CMI or CNH?

CNH GLOBAL N V Foreign has lower revenue, but higher earnings than Cummins. CNH GLOBAL N V Foreign 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	1.47	$735M	$15.14	24.03
CNH GLOBAL N V Foreign	$24.69B	0.54	$2.37B	$1.35	7.89

Does the MarketBeat Community favor CMI or CNH?

Cummins received 681 more outperform votes than CNH GLOBAL N V Foreign when rated by MarketBeat users. Likewise, 62.47% of users gave Cummins an outperform vote while only 58.38% of users gave CNH GLOBAL N V Foreign an outperform vote.

Company	Underperform	Outperform
Cummins	Outperform Votes 789 62.47%	Underperform Votes 474 37.53%
CNH GLOBAL N V Foreign	Outperform Votes 108 58.38%	Underperform Votes 77 41.62%

Do analysts prefer CMI or CNH?

Cummins presently has a consensus target price of $334.33, suggesting a potential downside of 8.10%. CNH GLOBAL N V Foreign has a consensus target price of $13.83, suggesting a potential upside of 29.89%. Given CNH GLOBAL N V Foreign's stronger consensus rating and higher probable upside, analysts clearly believe CNH GLOBAL N V Foreign 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
CNH GLOBAL N V Foreign	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50

Does the media prefer CMI or CNH?

In the previous week, Cummins had 25 more articles in the media than CNH GLOBAL N V Foreign. MarketBeat recorded 29 mentions for Cummins and 4 mentions for CNH GLOBAL N V Foreign. Cummins' average media sentiment score of 0.67 beat CNH GLOBAL N V Foreign's score of 0.00 indicating that Cummins is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cummins	15 Very Positive mention(s)	1 Positive mention(s)	9 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
CNH GLOBAL N V Foreign	3 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is CMI or CNH more profitable?

CNH GLOBAL N V Foreign has a net margin of 8.07% compared to Cummins' net margin of 6.13%. Cummins' return on equity of 26.86% beat CNH GLOBAL N V Foreign's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cummins	6.13%	26.86%	8.85%
CNH GLOBAL N V Foreign	8.07%	22.19%	3.87%

Is CMI or CNH a better dividend stock?

Cummins pays an annual dividend of $7.28 per share and has a dividend yield of 2.0%. CNH GLOBAL N V Foreign pays an annual dividend of $0.47 per share and has a dividend yield of 4.4%. Cummins pays out 48.1% of its earnings in the form of a dividend. CNH GLOBAL N V Foreign pays out 34.8% 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. Cummins has increased its dividend for 19 consecutive years. CNH GLOBAL N V Foreign is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Cummins beats CNH GLOBAL N V Foreign on 12 of the 20 factors compared between the two stocks.