Reviewing 3M (NYSE:MMM) & DuPont de Nemours (NYSE:DD)

DuPont de Nemours (NYSE:DD) and 3M (NYSE:MMM) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

74.0% of DuPont de Nemours shares are held by institutional investors. Comparatively, 65.2% of 3M shares are held by institutional investors. 1.0% of DuPont de Nemours shares are held by insiders. Comparatively, 0.2% of 3M shares are held 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.

Dividends

DuPont de Nemours pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. 3M pays an annual dividend of $3.12 per share and has a dividend yield of 1.7%. DuPont de Nemours pays out 533.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 3M pays out 46.5% of its earnings in the form of a dividend. 3M has raised its dividend for 1 consecutive years. 3M is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for DuPont de Nemours and 3M, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DuPont de Nemours	1	5	11	1	2.67
3M	1	8	6	1	2.44

DuPont de Nemours presently has a consensus price target of $162.00, suggesting a potential upside of 14.72%. 3M has a consensus price target of $185.36, suggesting a potential upside of 3.87%. Given DuPont de Nemours’ stronger consensus rating and higher probable upside, equities analysts clearly believe DuPont de Nemours is more favorable than 3M.

Risk and Volatility

DuPont de Nemours has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, 3M has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Valuation & Earnings

This table compares DuPont de Nemours and 3M”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DuPont de Nemours	$6.99 billion	2.73	-$779.00 million	$0.45	313.80
3M	$24.95 billion	3.70	$3.25 billion	$6.71	26.60

3M has higher revenue and earnings than DuPont de Nemours. 3M is trading at a lower price-to-earnings ratio than DuPont de Nemours, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DuPont de Nemours and 3M’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DuPont de Nemours	0.67%	6.92%	4.44%
3M	14.01%	123.11%	12.70%

Summary

3M beats DuPont de Nemours on 10 of the 17 factors compared between the two stocks.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.

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.