Analyzing Cummins (CMI) and Mosenergo (AOMOY)

Cummins (NYSE:CMI) and Mosenergo (OTCMKTS:AOMOY) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Dividends

Cummins pays an annual dividend of $4.56 per share and has a dividend yield of 3.2%. Mosenergo pays an annual dividend of $0.10 per share and has a dividend yield of 6.7%. Cummins pays out 42.9% of its earnings in the form of a dividend. Cummins has increased its dividend for 8 consecutive years.

Valuation & Earnings

This table compares Cummins and Mosenergo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cummins $20.43 billion 1.11 $999.00 million $10.62 13.34
Mosenergo $3.36 billion 0.35 $425.21 million N/A N/A

Cummins has higher revenue and earnings than Mosenergo.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cummins and Mosenergo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cummins 1 14 7 0 2.27
Mosenergo 0 0 0 0 N/A

Cummins currently has a consensus price target of $163.95, indicating a potential upside of 15.77%. Given Cummins’ higher probable upside, equities research analysts plainly believe Cummins is more favorable than Mosenergo.

Institutional & Insider Ownership

79.8% of Cummins shares are owned by institutional investors. 0.7% of Cummins shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Cummins 5.57% 29.17% 12.83%
Mosenergo 13.47% 10.86% 8.81%

Risk & Volatility

Cummins has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Mosenergo has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Summary

Cummins beats Mosenergo on 10 of the 14 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.

Mosenergo Company Profile

Public Joint Stock Company Mosenergo engages in the generation of heat and electric power in the Moscow City and Moscow region. It operates in two segments, Electric Energy and Heat Energy. The company owns 15 power plants with an operational capacity of approximately 12,873 megawatts of electricity; and 42,760 gigacalories/hour of heat capacity. It is also involved in the production, transmission, and distribution of heat and hot water; provision of repair and reconstruction services, as well as rental and maintenance services; and sale of feed water. In addition, the company provides design and construction management services. Public Joint Stock Company Mosenergo was founded in 1886 and is based in Moscow, Russia. Public Joint Stock Company Mosenergo is a subsidiary of Gazprom Energoholding LLC.

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