Reviewing 3M (NYSE:MMM) & Insulet (NASDAQ:PODD)


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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for 3M and Insulet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3M 2 6 4 0 2.17
Insulet 1 9 7 0 2.35

3M presently has a consensus target price of $183.27, indicating a potential downside of 5.84%. Insulet has a consensus target price of $254.24, indicating a potential downside of 11.13%. Given 3M’s higher possible upside, analysts plainly believe 3M is more favorable than Insulet.

Profitability

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

Net Margins Return on Equity Return on Assets
3M 15.65% 44.77% 10.66%
Insulet 3.33% 8.94% 2.07%

Earnings & Valuation

This table compares 3M and Insulet’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3M $32.14 billion 3.52 $4.57 billion $9.10 21.45
Insulet $738.20 million 25.44 $11.60 million $0.19 1,495.53

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

Volatility & Risk

3M has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Insulet has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

64.7% of 3M shares are held by institutional investors. 0.4% of 3M shares are held by insiders. Comparatively, 1.1% of Insulet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

3M beats Insulet on 9 of the 14 factors compared between the two stocks.

3M Company Profile

3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial segment offers personal safety products, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules to industrial, electrical, and safety markets. The Transportation and Electronics provides electronics, such as display materials and systems, electronic materials solutions; automotive and aerospace, and commercial solutions; advanced materials; and transportation safety products to transportation and electronic original equipment manufacturer customers. The Health Care segment offers medical and surgical supplies, skin health and infection prevention products, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety products to healthcare industry. The Consumer segment provides home improvement, home care, and consumer health care products, as well as stationery and office supplies to various consumers. This segment is also involved in the retail auto care business. It offers its products through various e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers, as well as directly to users. 3M Company has a strategic collaboration with Merry Maids in residential cleaning sector. The company was founded in 1902 and is headquartered in St. Paul, Minnesota.

Insulet Company Profile

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. Its Omnipod System comprise two devices: a self-adhesive disposable tubeless Omnipod device that is worn on the body for up to three days at a time, and its wireless companion, the handheld personal diabetes manager. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, and the Middle East. Insulet Corporation was founded in 2000 and is headquartered in Acton, Massachusetts.

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