CMI vs. DE, PCAR, WAB, TTC, AGCO, OSK, FSS, TEX, TRN, and ALG
Should you be buying Cummins stock or one of its competitors? The main competitors of Cummins include Deere & Company (DE), PACCAR (PCAR), Westinghouse Air Brake Technologies (WAB), Toro (TTC), AGCO (AGCO), Oshkosh (OSK), Federal Signal (FSS), Terex (TEX), Trinity Industries (TRN), and Alamo Group (ALG). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Deere & Company (NYSE:DE) and Cummins (NYSE:CMI) are both large-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their community ranking, analyst recommendations, earnings, risk, valuation, profitability, media sentiment, institutional ownership and dividends.
Deere & Company currently has a consensus price target of $432.92, suggesting a potential upside of 17.23%. Cummins has a consensus price target of $284.36, suggesting a potential upside of 2.18%. Given Cummins' stronger consensus rating and higher probable upside, equities analysts plainly believe Deere & Company is more favorable than Cummins.
In the previous week, Cummins had 1 more articles in the media than Deere & Company. MarketBeat recorded 25 mentions for Cummins and 24 mentions for Deere & Company. Deere & Company's average media sentiment score of 0.60 beat Cummins' score of 0.43 indicating that Cummins is being referred to more favorably in the news media.
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.
Deere & Company has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Cummins has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
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.
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.
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 increased its dividend for 3 consecutive years and Cummins has increased its dividend for 18 consecutive years. Cummins is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Deere & Company beats Cummins on 13 of the 20 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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