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MMM vs. HON: Which Stock Is the Better Value Option?
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Investors with an interest in Diversified Operations stocks have likely encountered both 3M (MMM - Free Report) and Honeywell International Inc. (HON - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, 3M is sporting a Zacks Rank of #2 (Buy), while Honeywell International Inc. has a Zacks Rank of #3 (Hold). This means that MMM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MMM currently has a forward P/E ratio of 11.75, while HON has a forward P/E of 21.08. We also note that MMM has a PEG ratio of 1.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HON currently has a PEG ratio of 2.37.
Another notable valuation metric for MMM is its P/B ratio of 3.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HON has a P/B of 7.35.
Based on these metrics and many more, MMM holds a Value grade of B, while HON has a Value grade of D.
MMM has seen stronger estimate revision activity and sports more attractive valuation metrics than HON, so it seems like value investors will conclude that MMM is the superior option right now.
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MMM vs. HON: Which Stock Is the Better Value Option?
Investors with an interest in Diversified Operations stocks have likely encountered both 3M (MMM - Free Report) and Honeywell International Inc. (HON - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, 3M is sporting a Zacks Rank of #2 (Buy), while Honeywell International Inc. has a Zacks Rank of #3 (Hold). This means that MMM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MMM currently has a forward P/E ratio of 11.75, while HON has a forward P/E of 21.08. We also note that MMM has a PEG ratio of 1.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HON currently has a PEG ratio of 2.37.
Another notable valuation metric for MMM is its P/B ratio of 3.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HON has a P/B of 7.35.
Based on these metrics and many more, MMM holds a Value grade of B, while HON has a Value grade of D.
MMM has seen stronger estimate revision activity and sports more attractive valuation metrics than HON, so it seems like value investors will conclude that MMM is the superior option right now.