Cummins (CMI) Competitors

Deere & Company (NYSE:DE) and Cummins (NYSE:CMI) are both large-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, media sentiment, profitability, valuation, earnings, risk, institutional ownership and community ranking.

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

68.6% of Deere & Company shares are held by institutional investors. Comparatively, 83.5% of Cummins shares are held by institutional investors. 0.3% of Deere & Company shares are held by insiders. Comparatively, 0.6% of Cummins shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media prefer DE or CMI?

In the previous week, Deere & Company had 3 more articles in the media than Cummins. MarketBeat recorded 20 mentions for Deere & Company and 17 mentions for Cummins. Cummins' average media sentiment score of 0.64 beat Deere & Company's score of 0.63 indicating that Deere & Company is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Deere & Company	8 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Cummins	10 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, DE or CMI?

Deere & Company has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Do analysts rate DE or CMI?

Deere & Company presently has a consensus target price of $432.92, suggesting a potential upside of 15.52%. Cummins has a consensus target price of $284.36, suggesting a potential upside of 0.93%. Given Cummins' stronger consensus rating and higher possible upside, analysts clearly believe Deere & Company is more favorable than Cummins.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deere & Company	0 Sell rating(s)	9 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.53
Cummins	2 Sell rating(s)	4 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.27

Is DE or CMI more profitable?

Deere & Company has a net margin of 16.15% compared to Deere & Company's net margin of 5.70%. Cummins' return on equity of 42.26% beat Deere & Company's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Deere & Company	16.15%	42.26%	9.14%
Cummins	5.70%	25.38%	8.56%

Is DE or CMI a better dividend stock?

Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.6%. Cummins pays an annual dividend of $6.72 per share and has a dividend yield of 2.4%. Deere & Company pays out 17.7% 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. Deere & Company has raised its dividend for 3 consecutive years and Cummins has raised its dividend for 18 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community favor DE or CMI?

Deere & Company received 364 more outperform votes than Cummins when rated by MarketBeat users. Likewise, 65.30% of users gave Deere & Company an outperform vote while only 62.92% of users gave Cummins an outperform vote.

Company	Underperform	Outperform
Deere & Company	Outperform Votes 1148 65.30%	Underperform Votes 610 34.70%
Cummins	Outperform Votes 784 62.92%	Underperform Votes 462 37.08%

Which has higher earnings and valuation, DE or CMI?

Deere & Company has higher revenue and earnings than Cummins. Deere & Company 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
Deere & Company	$57.54B	1.81	$10.17B	$33.22	11.28
Cummins	$34.07B	1.13	$735M	$13.66	20.62

Summary

Deere & Company beats Cummins on 15 of the 20 factors compared between the two stocks.