Cummins (NYSE:CMI) versus Symbotic (NASDAQ:SYM) Financial Review

Cummins (NYSE:CMI) and Symbotic (NASDAQ:SYM) are both large-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

Cummins has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Symbotic has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Earnings and Valuation

This table compares Cummins and Symbotic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cummins	$34.71 billion	2.11	$2.84 billion	$19.57	27.12
Symbotic	$2.25 billion	10.44	-$16.94 million	$0.09	430.78

Cummins has higher revenue and earnings than Symbotic. Cummins is trading at a lower price-to-earnings ratio than Symbotic, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

83.5% of Cummins shares are owned by institutional investors. 0.3% of Cummins shares are owned by insiders. Comparatively, 8.2% of Symbotic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Cummins and Symbotic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cummins	0	5	13	0	2.72
Symbotic	2	5	7	0	2.36

Cummins currently has a consensus price target of $708.18, indicating a potential upside of 33.44%. Symbotic has a consensus price target of $65.45, indicating a potential upside of 68.83%. Given Symbotic’s higher possible upside, analysts clearly believe Symbotic is more favorable than Cummins.

Profitability

This table compares Cummins and Symbotic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cummins	7.82%	25.29%	9.88%
Symbotic	0.48%	1.40%	0.41%

Summary

Cummins beats Symbotic on 9 of the 14 factors compared between the two stocks.

About Cummins

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines. It provides power generation systems, horsepower engines, heavy and medium duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems. Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. Additionally, it offers filtration, aftertreatment, controls systems, air handling systems, and electric power generation systems, and batteries. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. 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.

About Symbotic

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.