Mad Money Spotlight: Cummins

A stronger dollar -- barring a global economic recovery -- will hurt engine manufacturer Cummins(CMI Quote).

So said Jim Cramer in his "Mad Money" broadcast Tuesday evening, during a segment that saw colleague Dan Fitzpatrick argue, from the technical side of things, that Cummins stock looks like it will go higher after recently breaking through its 50-day moving average.

Arguing from a fundamentals standpoint, however, Cramer said that even if a recovery occurs sooner than later, he prefers Caterpillar(CAT Quote) stock -- which, full disclosure, Cramer owns for his charitable trust. Cramer likes Caterpillar's presence in international markets and its big dividend, double that of Cummins'.

Cummins, based in Columbus, Ind., makes diesel and natural-gas engines for vehicles like buses, tractor trailers and agricultural equipment. The company's latest quarterly results were poor, albeit expected: sales fell 30% year-over-year to $2.44 billion, while adjusted earnings came in at $51 million, some 73% less than the year-earlier period.

Cummins has some exposure to the auto-making industry. Earlier this month, the company temporarily shut down one of its plants, which makes diesel engines for Dodge Ram pickups, and laid off 610 workers. Company officials said they plan to reopen the plant when Chrysler begins manufacturing the trucks again.

Cummins shares were trading higher Wednesday morning, up about 4% to $33.98. The stock has performed decently year-to-date, climbing nearly 18%, but it remains well below its 52-week high of $75.98, set last June.

Caterpillar shares, meanwhile, were moving at $38.85, up 3%. Year-to-date, the stock has fallen some 15%.