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 business? We will compare the two companies based on the strength of their analyst recommendations, risk, community ranking, earnings, profitability, dividends, valuation, institutional ownership and media sentiment.

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%	22.33%	3.90%

Which has more volatility & risk, CMI or CNH?

Cummins has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, CNH GLOBAL N V Foreign has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Do insiders & institutionals have more ownership in 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. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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 3.8%. 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.

Do analysts prefer CMI or CNH?

Cummins presently has a consensus price target of $374.25, indicating a potential upside of 2.13%. CNH GLOBAL N V Foreign has a consensus price target of $14.27, indicating a potential upside of 15.71%. Given CNH GLOBAL N V Foreign's stronger consensus rating and higher probable upside, analysts plainly believe CNH GLOBAL N V Foreign 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
CNH GLOBAL N V Foreign	0 Sell rating(s)	5 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.58

Which has better earnings & valuation, 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	1.48	$735M	$15.14	24.20
CNH GLOBAL N V Foreign	$24.69B	0.62	$2.37B	$1.35	9.14

Does the MarketBeat Community believe in CMI or CNH?

Cummins received 681 more outperform votes than CNH GLOBAL N V Foreign when rated by MarketBeat users. Likewise, 62.37% of users gave Cummins an outperform vote while only 59.16% of users gave CNH GLOBAL N V Foreign an outperform vote.

Company	Underperform	Outperform
Cummins	Outperform Votes 794 62.37%	Underperform Votes 479 37.63%
CNH GLOBAL N V Foreign	Outperform Votes 113 59.16%	Underperform Votes 78 40.84%

Does the media prefer CMI or CNH?

In the previous week, Cummins had 34 more articles in the media than CNH GLOBAL N V Foreign. MarketBeat recorded 34 mentions for Cummins and 0 mentions for CNH GLOBAL N V Foreign. Cummins' average media sentiment score of 0.90 beat CNH GLOBAL N V Foreign's score of 0.00 indicating that Cummins is being referred to more favorably in the media.

Company	Overall Sentiment
Cummins	Positive
CNH GLOBAL N V Foreign	Neutral

Summary

Cummins beats CNH GLOBAL N V Foreign on 13 of the 21 factors compared between the two stocks.