CMI vs. F, GM, LI, MBLY, GPC, HMC, PCAR, MGA, LKQ, 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), Mobileye Global (MBLY), Genuine Parts (GPC), Honda Motor (HMC), PACCAR (PCAR), Magna International (MGA), LKQ (LKQ), 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 dividends, analyst recommendations, valuation, profitability, earnings, media sentiment, institutional ownership, community ranking and risk.
Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.7%. Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.3%. Ford Motor pays out 61.9% of its earnings in the form of a dividend. Cummins pays out 129.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cummins has increased its dividend for 18 consecutive years. Ford Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
Ford Motor currently has a consensus price target of $14.02, indicating a potential upside of 9.62%. Cummins has a consensus price target of $279.70, indicating a potential downside of 3.93%. Given Cummins' higher probable upside, equities research analysts clearly believe Ford Motor is more favorable than Cummins.
In the previous week, Ford Motor had 23 more articles in the media than Cummins. MarketBeat recorded 44 mentions for Ford Motor and 21 mentions for Cummins. Cummins' average media sentiment score of 0.65 beat Ford Motor's score of 0.52 indicating that Ford Motor is being referred to more favorably in the media.
Ford Motor has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, meaning 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.
Ford Motor has a net margin of 2.21% compared to Ford Motor's net margin of 2.16%. Ford Motor's return on equity of 25.68% beat Cummins' return on equity.
58.7% of Ford Motor shares are owned by institutional investors. Comparatively, 83.5% of Cummins shares are owned by institutional investors. 0.8% of Ford Motor shares are owned by company insiders. Comparatively, 0.6% of Cummins shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Ford Motor received 977 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 74.19% of users gave Ford Motor an outperform vote while only 63.06% of users gave Cummins an outperform vote.
Summary
Ford Motor beats Cummins on 12 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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