Mitsubishi (OTCMKTS:MSBHF) vs. 3M (NYSE:MMM) Financial Comparison

Mitsubishi (OTCMKTS:MSBHF) and 3M (NYSE:MMM) are both large-cap multi-sector conglomerates companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

65.3% of 3M shares are held by institutional investors. 0.5% of 3M shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mitsubishi	4.42%	8.03%	3.74%
3M	16.01%	96.48%	10.62%

Analyst Recommendations

This is a summary of recent ratings for Mitsubishi and 3M, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi	0	2	0	0	2.00
3M	1	2	7	0	2.60

3M has a consensus target price of $161.78, indicating a potential upside of 3.33%. Given 3M’s stronger consensus rating and higher possible upside, analysts plainly believe 3M is more favorable than Mitsubishi.

Volatility & Risk

Mitsubishi has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi	$122.26 billion	0.77	$6.27 billion	$1.36	17.38
3M	$24.58 billion	3.39	$4.17 billion	$7.19	21.77

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

Summary

3M beats Mitsubishi on 12 of the 14 factors compared between the two stocks.

About Mitsubishi

Mitsubishi Corporation engages in the natural gas, industrial materials and infrastructure, petroleum and chemicals, mineral resources, automotive and mobility, food and consumer industry, power solution, and urban development businesses worldwide. The Natural Gas segment engages in the development and production of natural gas/oil; and liquified natural gas business. Its Industrial Materials segment engages in sale, trading, and development of materials, including steel products, silica sand, cement, ready-mixed concrete, carbon materials, PVC, and functional materials for the automobile, mobility, construction, and infrastructure industries. The Petroleum & Chemicals segment invests in, develops, and trades in crude oil and oil products, LPG, ethylene, methanol, salt, ammonia, plastics, and fertilizers. Its Mineral Resources segment invests in and develops metallurgical coal, copper, iron ore, and aluminum. The Industrial Infrastructure segment trades in the field of energy infrastructure, industrial plants, machinery tools, construction and agricultural machinery, elevators, escalators, facility management, ships, and aerospace related equipment. Its Automotive & Mobility segment produces, finances, and sells passenger and commercial cars; and mobility services. The Food Industry segment trades, develops, and sells food resources, fresh foods, consumer goods, and food ingredients. Its Consumer Industry segment supplies products and services a range of fields, including retail and distribution, logistics, healthcare, apparel, and tire, etc. The Power Solution segment is involved in the power and water related businesses, including power generation and transmission, power trading and retail, and development of hydrogen energy sources. Its Urban Development segment engages in the leasing; and urban development, infrastructure, and real estate development, operation, and management businesses. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.

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.