Head-To-Head Contrast: Aker ASA (OTCMKTS:AKAAF) and 3M (NYSE:MMM)

Aker ASA (OTCMKTS:AKAAF) and 3M (NYSE:MMM) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Aker ASA and 3M, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aker ASA	0	0	1	0	3.00
3M	2	5	8	0	2.40

3M has a consensus price target of $177.21, indicating a potential downside of 0.97%. Given 3M’s higher possible upside, analysts clearly believe 3M is more favorable than Aker ASA.

Dividends

Aker ASA pays an annual dividend of $9.75 per share and has a dividend yield of 6.5%. 3M pays an annual dividend of $3.12 per share and has a dividend yield of 1.7%. Aker ASA pays out 67.0% of its earnings in the form of a dividend. 3M pays out 55.4% 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 1 consecutive years.

Profitability

This table compares Aker ASA and 3M’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aker ASA	N/A	N/A	N/A
3M	11.90%	115.87%	12.52%

Institutional & Insider Ownership

9.3% of Aker ASA shares are owned by institutional investors. Comparatively, 65.2% of 3M shares are owned by institutional investors. 0.2% of 3M shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Aker ASA and 3M”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aker ASA	N/A	N/A	N/A	$14.55	10.24
3M	$25.18 billion	3.67	$3.25 billion	$5.63	31.78

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

Summary

3M beats Aker ASA on 11 of the 14 factors compared between the two stocks.

About Aker ASA

Aker ASA operates as an industrial investment company in Norway, the European Union, North America, South America, Asia, and internationally. The company operates in two segments: Industrial Holdings and Financial Investments. It harvests, develops, markets, and sells krill-based ingredients and products, such as Superba Krill Oil, a phospholipid-based omega-3 dietary supplement, and Kori, an omega-3 supplement for consumers; QRILL Aqua, an ingredient for the aquaculture industry; and QRILL Pet, an omega-3 ingredient for pet food. The company also develops renewable energy and green industrial projects; designs and delivers of superconducting connection systems to connect renewable generation and increase grid interconnection; generation of electricity through onshore and offshore wind and solar power projects; and engages in asset development activities. In addition, it provides Cognite Data Fusion, a software-as-a-service, which collects, processes, and presents huge volumes of data for oil and gas, energy, electricity distribution, renewable energy, green technology, processing, manufacturing, power, cleantech, and other sectors; and develops collaborative workspace software for heavy-asset owners and its contractors, vendors, and partners. Further, the company is involved in the exploration and production of oil and gas; design and construction of vessels; trading of financial instruments; development of real estate properties; operation of hotels; and provision of asset and investment management services. Additionally, it focuses on renewable energy and green technologies; operates platform for venture capital in industrial technology; and invests in bitcoin, and projects and companies throughout the bitcoin ecosystem. The company was founded in 1841 and is based in Lysaker, Norway. Aker ASA operates as a subsidiary of TRG Holding AS.

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.