Critical Survey: China Merchants Holdings International (OTCMKTS:CMHHY) & 3M (NYSE:MMM)

3M (NYSE:MMM) and China Merchants Holdings International (OTCMKTS:CMHHY) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for 3M and China Merchants Holdings International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
3M	1	6	5	0	2.33
China Merchants Holdings International	0	0	0	0	0.00

3M currently has a consensus price target of $171.17, indicating a potential upside of 16.99%. Given 3M’s stronger consensus rating and higher probable upside, research analysts plainly believe 3M is more favorable than China Merchants Holdings International.

Institutional & Insider Ownership

65.3% of 3M shares are held by institutional investors. 0.2% of 3M shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

3M pays an annual dividend of $3.12 per share and has a dividend yield of 2.1%. China Merchants Holdings International pays an annual dividend of $0.55 per share and has a dividend yield of 2.7%. 3M pays out 60.1% of its earnings in the form of a dividend. 3M has increased its dividend for 1 consecutive years.

Risk & Volatility

3M has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, China Merchants Holdings International has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500.

Profitability

This table compares 3M and China Merchants Holdings International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
3M	11.14%	104.75%	12.03%
China Merchants Holdings International	N/A	N/A	N/A

Valuation and Earnings

This table compares 3M and China Merchants Holdings International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
3M	$25.02 billion	3.05	$3.25 billion	$5.19	28.19
China Merchants Holdings International	$1.71 billion	5.03	$834.46 million	N/A	N/A

3M has higher revenue and earnings than China Merchants Holdings International.

Summary

3M beats China Merchants Holdings International on 12 of the 15 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 China Merchants Holdings International

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Brazil, Hong Kong, Taiwan, and internationally. The company operates through Ports Operation, Bonded Logistics Operation, and Other Operations segments. It engages in the container, and bulk and general cargo terminal operation; logistic park operation, ports transportation, and airport cargo handling; and property development, holding, and investment activities. The company also provides container related logistics services; financial services; and port development, management, and operation services. In addition, it operates berths and tugboats; and holds various pieces of land. The company was formerly known as China Merchants Holdings (International) Company Limited and changed its name to China Merchants Port Holdings Company Limited in June 2016. The company was founded in 1872 and is headquartered in Central, Hong Kong.