Financial Survey: Mosenergo (AOMOY) and Cummins (CMI)

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

Volatility & Risk

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

Insider and Institutional Ownership

79.8% of Cummins shares are held by institutional investors. 0.7% of Cummins shares are held by company 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.

Dividends

Mosenergo pays an annual dividend of $0.10 per share and has a dividend yield of 6.7%. Cummins pays an annual dividend of $4.56 per share and has a dividend yield of 3.1%. 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 Mosenergo and Cummins’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mosenergo $3.36 billion 0.35 $425.21 million N/A N/A
Cummins $20.43 billion 1.14 $999.00 million $10.62 13.70

Cummins has higher revenue and earnings than Mosenergo.

Analyst Recommendations

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

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

Cummins has a consensus target price of $163.63, indicating a potential upside of 12.44%. Given Cummins’ higher possible upside, analysts clearly believe Cummins is more favorable than Mosenergo.

Profitability

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

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

Summary

Cummins beats Mosenergo on 10 of the 14 factors compared between the two stocks.

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.

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.

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