3M (NYSE: MMM) is one of 104 public companies in the “Surgical & medical instruments” industry, but how does it compare to its competitors? We will compare 3M to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, valuation, dividends and risk.

Earnings and Valuation

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This table compares 3M and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
3M $31.66 billion $4.86 billion 23.70
3M Competitors $1.54 billion $111.80 million -144.98

3M has higher revenue and earnings than its competitors. 3M is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for 3M and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3M 4 3 8 0 2.27
3M Competitors 492 1882 3745 115 2.56

3M presently has a consensus target price of $250.36, suggesting a potential upside of 15.18%. As a group, “Surgical & medical instruments” companies have a potential upside of 9.51%. Given 3M’s higher probable upside, equities research analysts clearly believe 3M is more favorable than its competitors.

Institutional & Insider Ownership

66.9% of 3M shares are owned by institutional investors. Comparatively, 47.1% of shares of all “Surgical & medical instruments” companies are owned by institutional investors. 0.7% of 3M shares are owned by company insiders. Comparatively, 15.4% of shares of all “Surgical & medical instruments” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

3M has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, 3M’s competitors have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

Profitability

This table compares 3M and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
3M 15.35% 48.34% 16.00%
3M Competitors -62.26% -47.35% -18.28%

Dividends

3M pays an annual dividend of $5.44 per share and has a dividend yield of 2.5%. 3M pays out 59.3% of its earnings in the form of a dividend. As a group, “Surgical & medical instruments” companies pay a dividend yield of 1.2% and pay out 32.7% of their earnings in the form of a dividend. 3M has increased its dividend for 59 consecutive years.

Summary

3M beats its competitors on 10 of the 15 factors compared.

About 3M

3M Company operates as a diversified technology company worldwide. The company's Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products. Its Safety and Graphics Business segment provides personal protection products, transportation safety products, commercial graphics systems, commercial cleaning and protection products, floor matting, roofing granules for asphalt shingles, and fall protection products. The company's Health Care segment offers medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. Its Electronics and Energy segment provides optical films; packaging and interconnection devices; insulating and splicing solutions; touch screens and touch monitors; renewable energy component solutions; and infrastructure protection products. The company's Consumer segment offers sponges, scouring pads, high-performance cloths, repositionable notes, indexing systems, home improvement and care products, and protective materials; and consumer and office tapes and adhesives. It serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets directly, as well as through wholesalers, retailers, jobbers, distributors, and dealers. The company was founded in 1902 and is headquartered in St. Paul, Minnesota.

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