Analyzing Cummins (CMI) & Électricité de France (ECIFY)
Cummins (NYSE: CMI) and Électricité de France (OTCMKTS:ECIFY) are both large-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Institutional & Insider Ownership
84.2% of Cummins shares are owned by institutional investors. Comparatively, 0.1% of Électricité de France shares are owned by institutional investors. 0.7% of Cummins shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for Cummins and Électricité de France, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Électricité de France||0||2||1||0||2.33|
Cummins presently has a consensus target price of $170.74, indicating a potential upside of 16.01%. Given Cummins’ higher possible upside, equities analysts plainly believe Cummins is more favorable than Électricité de France.
This table compares Cummins and Électricité de France’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Électricité de France||N/A||N/A||N/A|
Risk and Volatility
Cummins has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Électricité de France has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
Valuation & Earnings
This table compares Cummins and Électricité de France’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cummins||$20.43 billion||1.19||$999.00 million||$10.62||13.86|
|Électricité de France||$78.71 billion||0.52||$3.59 billion||N/A||N/A|
Électricité de France has higher revenue and earnings than Cummins.
Cummins pays an annual dividend of $4.32 per share and has a dividend yield of 2.9%. Électricité de France pays an annual dividend of $0.30 per share and has a dividend yield of 10.6%. Cummins pays out 40.7% of its earnings in the form of a dividend. Cummins has raised its dividend for 8 consecutive years.
Cummins beats Électricité de France on 9 of the 15 factors compared between the two stocks.
Cummins Company Profile
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets. This segment also offers new parts and services, as well as remanufactured parts and engines. The Distribution segment distributes parts, engines, and power generation products; and provides service solutions, such as maintenance contracts, engineering services, and integrated products. The Components segment offers emission solutions, including custom engineering systems and integrated controls, oxidation catalysts, particulate filters, selective catalytic reduction systems, and engineered components; and turbochargers for light-duty, mid-range, heavy-duty, and high-horsepower diesel markets. This segment also provides air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and fuel systems for heavy-duty on-highway diesel engine applications, as well as remanufactures fuel systems. The Power Generation segment offers components that back-up and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford, AVK, and Markon brands. Cummins Inc. sells its products to original equipment manufacturers, dealers/distributors, and end users. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Électricité de France Company Profile
Electricité de France S.A., an integrated energy company, engages in the generation, transmission, distribution, supply, and trading of power and energy services in France, the United Kingdom, Italy, and internationally. It generates electricity through nuclear, fossil fuel, hydro, solar, wind, biomass, biogas, tidal, geothermal, and cogeneration plants. The company also manages low and medium-voltage public distribution networks; and operates, maintains, and develops high-voltage and very-high-voltage electricity transmission networks. In addition, it is involved in the commodity trading activities; and the provision of energy services, including district heating services, thermal energy services, etc. As of March 10, 2018, the company supplied energy and services to approximately 37.1 million customers. It serves small businesses, local authorities, and industrial and residential customers. Electricité de France S.A. was founded in 1946 and is headquartered in Paris, France.
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