Jardine Matheson (OTCMKTS:JMHLY) and 3M (NYSE:MMM) Financial Contrast

Jardine Matheson (OTCMKTS:JMHLY) and 3M (NYSE:MMM) are both large-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

65.3% of 3M shares are owned by institutional investors. 0.3% of 3M shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Jardine Matheson and 3M, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jardine Matheson	0	0	0	2	4.00
3M	1	2	8	0	2.64

3M has a consensus price target of $176.10, indicating a potential upside of 4.15%. Given 3M’s higher possible upside, analysts clearly believe 3M is more favorable than Jardine Matheson.

Dividends

Jardine Matheson pays an annual dividend of $1.06 per share and has a dividend yield of 1.6%. 3M pays an annual dividend of $2.92 per share and has a dividend yield of 1.7%. 3M pays out 46.6% of its earnings in the form of a dividend. 3M has increased its dividend for 1 consecutive years. 3M is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jardine Matheson	N/A	N/A	N/A
3M	13.70%	98.47%	11.05%

Risk & Volatility

Jardine Matheson has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Jardine Matheson and 3M”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jardine Matheson	$35.78 billion	0.55	-$468.00 million	N/A	N/A
3M	$24.58 billion	3.65	$4.17 billion	$6.26	27.01

3M has lower revenue, but higher earnings than Jardine Matheson.

Summary

3M beats Jardine Matheson on 12 of the 16 factors compared between the two stocks.

About Jardine Matheson

Jardine Matheson Holdings Limited, through its subsidiaries, operates in motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, and transport businesses in China, Southeast Asia, and internationally. It also involved in the restaurants and hotels, financial services, heavy equipment, mining, and agribusinesses. The company offers automotive and transport services, as well as invests in, develops, and manages residential, commercial, and mixed-use properties. It also operates 7-Eleven, IKEA, and other retailing business, as well as Pizza Hut and KFC franchise restaurants; and invests in and manages hotels, resorts, and residences, as well as engages in construction and energy, infrastructure and logistics, and information technology businesses. In addition, the company sells and services motor vehicles; invests in, owns, develops, and manages office and retail properties; operates outlets, including supermarkets, hypermarkets, health and beauty stores, and home furnishings stores. Further, it engages in the automotive dealerships business. Additionally, the company invests in digital business, such as Halodoc, a healthtech online ecosystem; Sayurbox, an e-commerce grocery platform; Paxel, a technology-based logistics business; and OLX, a used car platform. Jardine Matheson Holdings Limited was founded in 1832 and is based in Hamilton, Bermuda.

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.