3M (MMM) and Raven Industries (RAVN) Financial Analysis
3M (NYSE: MMM) and Raven Industries (NASDAQ:RAVN) are both multi-sector conglomerates companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
3M pays an annual dividend of $4.70 per share and has a dividend yield of 2.3%. Raven Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.9%. 3M pays out 53.6% of its earnings in the form of a dividend. Raven Industries pays out 61.2% 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. Raven Industries has raised its dividend for 58 consecutive years. 3M is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
66.3% of 3M shares are owned by institutional investors. Comparatively, 73.1% of Raven Industries shares are owned by institutional investors. 0.6% of 3M shares are owned by insiders. Comparatively, 1.8% of Raven Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares 3M and Raven Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for 3M and Raven Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
3M presently has a consensus target price of $205.67, suggesting a potential upside of 1.03%. Raven Industries has a consensus target price of $33.50, suggesting a potential upside of 19.86%. Given Raven Industries’ higher possible upside, analysts plainly believe Raven Industries is more favorable than 3M.
Valuation & Earnings
This table compares 3M and Raven Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|3M||$30.53 billion||3.98||$8.53 billion||$8.77||23.21|
|Raven Industries||$321.58 million||3.15||$61.23 million||$0.85||32.88|
3M has higher revenue and earnings than Raven Industries. 3M is trading at a lower price-to-earnings ratio than Raven Industries, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
3M has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Raven Industries has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
3M beats Raven Industries on 11 of the 17 factors compared between the two stocks.
3M Company Profile
3M Company is a technology company. It operates through five segments. The Industrial segment serves a range of markets, such as automotive original equipment manufacturer and automotive aftermarket, electronics, appliance, paper and printing, packaging, food and beverage, and construction. The Safety and Graphics segment serves a range of markets for the safety, security and productivity of people, facilities and systems. The Health Care segment serves markets that include medical clinics and hospitals, pharmaceuticals, health information systems, and food manufacturing and testing. The Electronics and Energy segment serves customers in electronics and energy markets, including solutions for the performance of electronic devices; electrical products, including infrastructure protection, and power generation and distribution. The Consumer segment serves markets that include consumer retail, office business to business, home improvement, drug and pharmacy retail, and other markets.
Raven Industries Company Profile
Raven Industries, Inc. is a diversified technology company providing a range of products to customers within the industrial, agricultural, energy, construction and defense markets. The Company operates through three segments: Applied Technology Division (Applied Technology), Engineered Films Division (Engineered Films) and Aerostar Division (Aerostar). The Applied Technology segment designs, manufactures, sells and services precision agriculture products and information management tools for growers. The Engineered Films segment produces plastic films and sheeting for energy, agricultural, construction, geomembrane and industrial applications. The Aerostar segment designs and manufactures products, including balloons, tethered aerostats and radar processing systems. It conducts business through its subsidiaries, including Aerostar International, Inc. (Aerostar), Vista Research, Inc. (Vista), Raven International Holding Company BV (Raven Holdings) and Raven Industries Canada, Inc.
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