3M (NYSE:MMM – Get Free Report) and Benev Capital (OTCMKTS:BEVFF – Get Free Report) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Institutional and Insider Ownership
65.3% of 3M shares are held by institutional investors. 0.5% of 3M shares are held by insiders. Comparatively, 12.0% of Benev Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for 3M and Benev Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 3M | 1 | 3 | 7 | 0 | 2.55 |
| Benev Capital | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares 3M and Benev Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 3M | 13.70% | 98.47% | 11.05% |
| Benev Capital | 43.17% | 12.47% | 6.04% |
Valuation & Earnings
This table compares 3M and Benev Capital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 3M | $24.58 billion | 3.50 | $4.17 billion | $6.26 | 25.88 |
| Benev Capital | $47.44 million | 9.79 | $19.43 million | $0.13 | 20.96 |
3M has higher revenue and earnings than Benev Capital. Benev Capital is trading at a lower price-to-earnings ratio than 3M, indicating that it is currently the more affordable of the two stocks.
Dividends
3M pays an annual dividend of $2.92 per share and has a dividend yield of 1.8%. Benev Capital pays an annual dividend of $0.20 per share and has a dividend yield of 7.3%. 3M pays out 46.6% of its earnings in the form of a dividend. Benev Capital pays out 153.8% 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 has raised its dividend for 1 consecutive years.
Volatility & Risk
3M has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Benev Capital has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Summary
3M beats Benev Capital on 13 of the 17 factors compared between the two stocks.
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 Benev Capital
Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.
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