3M (NYSE:MMM – Get Free Report) and Westaim (OTCMKTS:WEDXF – Get Free Report) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Earnings and Valuation
This table compares 3M and Westaim’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
3M | $32.61 billion | 2.16 | -$7.00 billion | ($12.72) | -9.99 |
Westaim | $8.63 million | 43.52 | $183.98 million | $0.81 | 3.62 |
Westaim has lower revenue, but higher earnings than 3M. 3M is trading at a lower price-to-earnings ratio than Westaim, indicating that it is currently the more affordable of the two stocks.
Dividends
Analyst Recommendations
This is a breakdown of recent ratings and price targets for 3M and Westaim, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
3M | 1 | 5 | 8 | 0 | 2.50 |
Westaim | 0 | 0 | 0 | 0 | N/A |
3M currently has a consensus price target of $123.57, suggesting a potential downside of 2.76%. Given 3M’s higher probable upside, equities analysts plainly believe 3M is more favorable than Westaim.
Volatility and Risk
3M has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Westaim has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Institutional and Insider Ownership
65.3% of 3M shares are held by institutional investors. 0.3% of 3M shares are held by insiders. Comparatively, 4.2% of Westaim shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares 3M and Westaim’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
3M | 3.08% | 112.92% | 10.52% |
Westaim | 1,323.83% | 22.34% | 20.94% |
About 3M
3M Company provides diversified technology services in the United States and internationally. The company's Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. Its Transportation and Electronics segment provides ceramic solutions; attachment/bonding products, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; semiconductor production materials; data centers solutions; and reflective signage for highway, and vehicle safety. The company's Consumer segment provides consumer bandages, braces, supports, and consumer respirators; home cleaning products; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M Company was founded in 1902 and is headquartered in Saint Paul, Minnesota.
About Westaim
The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.
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