MMM vs. DHR, GE, CSL, SYK, BSX, BDX, DXCM, RMD, WST, and BAX
Should you be buying 3M stock or one of its competitors? The main competitors of 3M include Danaher (DHR), General Electric (GE), Carlisle Companies (CSL), Stryker (SYK), Boston Scientific (BSX), Becton, Dickinson and Company (BDX), DexCom (DXCM), ResMed (RMD), West Pharmaceutical Services (WST), and Baxter International (BAX).
3M (NYSE:MMM) and Danaher (NYSE:DHR) are both large-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, community ranking, risk, dividends, analyst recommendations, profitability, institutional ownership, media sentiment and earnings.
3M pays an annual dividend of $2.80 per share and has a dividend yield of 2.8%. Danaher pays an annual dividend of $1.08 per share and has a dividend yield of 0.4%. 3M pays out -22.0% of its earnings in the form of a dividend. Danaher pays out 18.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. 3M is clearly the better dividend stock, given its higher yield and lower payout ratio.
Danaher has lower revenue, but higher earnings than 3M. 3M is trading at a lower price-to-earnings ratio than Danaher, indicating that it is currently the more affordable of the two stocks.
3M presently has a consensus price target of $108.55, indicating a potential upside of 8.39%. Danaher has a consensus price target of $267.31, indicating a potential upside of 4.09%. Given 3M's higher possible upside, analysts plainly believe 3M is more favorable than Danaher.
In the previous week, 3M had 9 more articles in the media than Danaher. MarketBeat recorded 19 mentions for 3M and 10 mentions for Danaher. Danaher's average media sentiment score of 1.36 beat 3M's score of 0.62 indicating that Danaher is being referred to more favorably in the news media.
3M has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Danaher has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
65.3% of 3M shares are owned by institutional investors. Comparatively, 79.1% of Danaher shares are owned by institutional investors. 0.3% of 3M shares are owned by insiders. Comparatively, 11.1% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Danaher received 136 more outperform votes than 3M when rated by MarketBeat users. Likewise, 74.73% of users gave Danaher an outperform vote while only 59.53% of users gave 3M an outperform vote.
Danaher has a net margin of 16.78% compared to 3M's net margin of -21.57%. 3M's return on equity of 95.80% beat Danaher's return on equity.
Summary
Danaher beats 3M on 12 of the 20 factors compared between the two stocks.
Get 3M News Delivered to You Automatically
Sign up to receive the latest news and ratings for MMM and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding MMM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Related Companies and Tools
