Head to Head Analysis: Icahn Enterprises L.P. (IEP) & 3M (MMM)
Icahn Enterprises L.P. (NASDAQ: IEP) and 3M (NYSE:MMM) are both mid-cap multi-sector conglomerates companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.
This is a summary of recent ratings and price targets for Icahn Enterprises L.P. and 3M, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Icahn Enterprises L.P.||0||0||1||0||3.00|
Icahn Enterprises L.P. presently has a consensus price target of $61.00, indicating a potential upside of 11.95%. 3M has a consensus price target of $207.78, indicating a potential downside of 2.34%. Given Icahn Enterprises L.P.’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Icahn Enterprises L.P. is more favorable than 3M.
Insider & Institutional Ownership
96.8% of Icahn Enterprises L.P. shares are held by institutional investors. Comparatively, 66.2% of 3M shares are held by institutional investors. 90.1% of Icahn Enterprises L.P. shares are held by insiders. Comparatively, 0.6% of 3M shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Icahn Enterprises L.P. and 3M’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Icahn Enterprises L.P.||N/A||N/A||N/A||$7.85||6.94|
|3M||$30.53 billion||4.16||$8.53 billion||$8.77||24.26|
3M has higher revenue and earnings than Icahn Enterprises L.P.. Icahn Enterprises L.P. is trading at a lower price-to-earnings ratio than 3M, indicating that it is currently the more affordable of the two stocks.
Icahn Enterprises L.P. pays an annual dividend of $3.00 per share and has a dividend yield of 5.5%. 3M pays an annual dividend of $4.70 per share and has a dividend yield of 2.2%. Icahn Enterprises L.P. pays out 38.2% of its earnings in the form of a dividend. 3M pays out 53.6% 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. Icahn Enterprises L.P. has raised its dividend for 58 consecutive years. Icahn Enterprises L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Icahn Enterprises L.P. has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, 3M has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
This table compares Icahn Enterprises L.P. and 3M’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Icahn Enterprises L.P.||6.35%||15.51%||4.18%|
Icahn Enterprises L.P. beats 3M on 8 of the 15 factors compared between the two stocks.
Icahn Enterprises L.P. Company Profile
Icahn Enterprises L.P. (Icahn Enterprises) is a holding company. The Company’s segments include Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Mining, Real Estate and Home Fashion. The Company’s Investment segment includes various private investment funds. The Company operates its Automotive segment through its ownership in Federal-Mogul Holdings Corporation and IEH Auto Parts Holding LLC. The Company operates Energy segment through its controlling interest in CVR Energy, Inc. It operates its Metals segment through its subsidiary, PSC Metals, Inc. The Company operates its Railcar segment through its ownership interests in American Railcar Industries, Inc. Its Food Packaging segment consists of ownership in Viskase Companies, Inc. The Company’s Real Estate operations consist of rental real estate, property development and associated resorts. It also owns a limited partner interest in Icahn Enterprises Holdings L.P. (Icahn Enterprises Holdings).
3M Company Profile
3M Company is a technology company. It operates through five segments. The Industrial segment serves a range of markets, such as automotive original equipment manufacturer and automotive aftermarket, electronics, appliance, paper and printing, packaging, food and beverage, and construction. The Safety and Graphics segment serves a range of markets for the safety, security and productivity of people, facilities and systems. The Health Care segment serves markets that include medical clinics and hospitals, pharmaceuticals, health information systems, and food manufacturing and testing. The Electronics and Energy segment serves customers in electronics and energy markets, including solutions for the performance of electronic devices; electrical products, including infrastructure protection, and power generation and distribution. The Consumer segment serves markets that include consumer retail, office business to business, home improvement, drug and pharmacy retail, and other markets.
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