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 investment? We will contrast the two businesses based on the strength of their profitability, community ranking, valuation, dividends, institutional ownership, risk, earnings, analyst recommendations and media sentiment.
65.3% of 3M shares are held by institutional investors. Comparatively, 79.1% of Danaher shares are held by institutional investors. 0.3% of 3M shares are held by company insiders. Comparatively, 10.9% of Danaher shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
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.
In the previous week, 3M had 6 more articles in the media than Danaher. MarketBeat recorded 15 mentions for 3M and 9 mentions for Danaher. Danaher's average media sentiment score of 0.86 beat 3M's score of 0.74 indicating that Danaher is being referred to more favorably in the news media.
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.
3M pays an annual dividend of $2.80 per share and has a dividend yield of 2.9%. 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.
3M has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Danaher has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
3M currently has a consensus price target of $108.55, suggesting a potential upside of 11.20%. Danaher has a consensus price target of $267.31, suggesting a potential upside of 4.40%. Given 3M's higher possible upside, analysts clearly believe 3M is more favorable than Danaher.
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.
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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.
Skip ChartThis 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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