3M (MMM) versus ABIOMED (ABMD) Financial Analysis
3M (NYSE:MMM) and ABIOMED (NASDAQ:ABMD) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Volatility & Risk
3M has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, ABIOMED has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.
3M pays an annual dividend of $5.76 per share and has a dividend yield of 2.8%. ABIOMED does not pay a dividend. 3M pays out 55.1% of its earnings in the form of a dividend. 3M has raised its dividend for 60 consecutive years.
Valuation & Earnings
This table compares 3M and ABIOMED’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|3M||$32.77 billion||3.66||$5.35 billion||$10.46||19.89|
|ABIOMED||$593.75 million||25.30||$112.17 million||$2.45||136.01|
3M has higher revenue and earnings than ABIOMED. 3M is trading at a lower price-to-earnings ratio than ABIOMED, indicating that it is currently the more affordable of the two stocks.
This table compares 3M and ABIOMED’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
67.0% of 3M shares are owned by institutional investors. Comparatively, 87.0% of ABIOMED shares are owned by institutional investors. 0.7% of 3M shares are owned by company insiders. Comparatively, 3.5% of ABIOMED shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent recommendations for 3M and ABIOMED, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
3M presently has a consensus target price of $211.36, suggesting a potential upside of 1.58%. ABIOMED has a consensus target price of $426.60, suggesting a potential upside of 28.02%. Given ABIOMED’s stronger consensus rating and higher possible upside, analysts clearly believe ABIOMED is more favorable than 3M.
ABIOMED beats 3M on 9 of the 16 factors compared between the two stocks.
3M Company Profile
3M Company operates as a diversified technology company worldwide. The company's Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products. Its Safety and Graphics Business segment provides personal protection products, transportation safety products, commercial graphics systems, commercial cleaning and protection products, floor matting, roofing granules for asphalt shingles, and fall protection products. The company's Health Care segment offers medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. Its Electronics and Energy segment provides optical films; packaging and interconnection devices; insulating and splicing solutions; touch screens and touch monitors; renewable energy component solutions; and infrastructure protection products. The company's Consumer segment offers sponges, scouring pads, high-performance cloths, repositionable notes, indexing systems, home improvement and care products, and protective materials; and consumer and office tapes and adhesives. 3M Company also provides cloud-based, conversational artificial intelligence-powered systems. It serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets. The company was founded in 1902 and is headquartered in St. Paul, Minnesota.
ABIOMED Company Profile
ABIOMED, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company is involved in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump, a device for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Japan. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.
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