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NEW YORK ( TheStreet) -- Before you buy a stock, stop and think about the company's competition, Jim Cramer warned "Mad Money" viewers Tuesday. Cramer said that in today's market competition matters, and those in cut-throat businesses are getting pummeled. Cramer's theory was clearly evident in Tuesday's trading with companies such as United Technologies ( UTX) leading the charge higher. Not only is the company in the red-hot aerospace market, but it's also able to raise its prices and enjoy bigger margins thanks to extremely limited competition. On the flip side, there's Travelers ( TRV), the insurer that's getting hit on all sides as it is forced to compete for business largely on price alone. Shares of Travelers did not fare well in today's trading, noted Cramer. Both Honeywell ( HON) and General Electric ( GE) did well in the quarter, as did rails CSX ( CSX) and Union Pacific ( UNP). Cramer also liked banks such as JPMorgan Chase ( JPM) and Wells Fargo ( WFC), two stocks he owns for his charitable trust,