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).
Danaher (NYSE:DHR) and 3M (NYSE:MMM) are both large-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, community ranking, dividends, analyst recommendations, profitability and media sentiment.
Danaher received 137 more outperform votes than 3M when rated by MarketBeat users. Likewise, 74.73% of users gave Danaher an outperform vote while only 59.50% of users gave 3M an outperform vote.
Danaher has higher earnings, but lower revenue 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.
Danaher has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, 3M has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
In the previous week, Danaher had 4 more articles in the media than 3M. MarketBeat recorded 16 mentions for Danaher and 12 mentions for 3M. 3M's average media sentiment score of 0.82 beat Danaher's score of 0.79 indicating that Danaher is being referred to more favorably in the media.
79.1% of Danaher shares are owned by institutional investors. Comparatively, 65.3% of 3M shares are owned by institutional investors. 10.9% of Danaher shares are owned by insiders. Comparatively, 0.4% of 3M 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 has a net margin of 16.78% compared to Danaher's net margin of -21.57%. Danaher's return on equity of 95.80% beat 3M's return on equity.
Danaher presently has a consensus target price of $267.31, indicating a potential upside of 3.34%. 3M has a consensus target price of $108.55, indicating a potential upside of 9.98%. Given Danaher's higher probable upside, analysts clearly believe 3M is more favorable than Danaher.
Danaher pays an annual dividend of $1.08 per share and has a dividend yield of 0.4%. 3M pays an annual dividend of $2.80 per share and has a dividend yield of 2.8%. Danaher pays out 18.3% of its earnings in the form of a dividend. 3M pays out -22.0% 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. Danaher has raised its dividend for 1 consecutive years and 3M has raised its dividend for 67 consecutive years. 3M is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Danaher beats 3M on 13 of the 21 factors compared between the two stocks.
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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.
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