3M (NYSE: MMM) and Barloworld (OTCMKTS:BRRAY) are both multi-sector conglomerates companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.
Volatility and Risk
3M has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Barloworld has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for 3M and Barloworld, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
3M presently has a consensus price target of $250.92, indicating a potential upside of 14.31%. Given 3M’s higher probable upside, equities research analysts plainly believe 3M is more favorable than Barloworld.
Earnings & Valuation
This table compares 3M and Barloworld’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|3M||$31.66 billion||4.13||$4.86 billion||$9.17||23.94|
|Barloworld||$4.63 billion||0.65||$122.89 million||$0.72||19.68|
3M has higher revenue and earnings than Barloworld. Barloworld is trading at a lower price-to-earnings ratio than 3M, indicating that it is currently the more affordable of the two stocks.
This table compares 3M and Barloworld’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
3M pays an annual dividend of $5.44 per share and has a dividend yield of 2.5%. Barloworld pays an annual dividend of $0.21 per share and has a dividend yield of 1.5%. 3M pays out 59.3% of its earnings in the form of a dividend. Barloworld pays out 29.2% 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 has raised its dividend for 59 consecutive years. 3M is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
66.9% of 3M shares are held by institutional investors. 0.6% of 3M shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
3M beats Barloworld on 13 of the 15 factors compared between the two stocks.
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.
Barloworld Limited is a distributor of international brands providing integrated rental, fleet management, product support and logistics solutions. The Company’s segments are Equipment, Handling, Automotive, Logistics and Corporate. The Equipment segment provides customers with solutions that include Caterpillar earthmoving equipment, engines and other complementary brands. The Handling segment provides customers with solutions for material handling needs that include lift trucks, warehouse handling equipment and distribution of agricultural equipment. The Automotive segment provides customers with motor vehicle usage solutions through the operation of car rental, motor retail and fleet service business units. The Logistics segment provides customers with traditional logistics services and supply chain management solutions. The Corporate segment comprises all other activities, including the operations of the corporate office in Johannesburg and treasury in the United Kingdom.
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