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HON vs. MMM: Which Stock Is the Better Value Option?
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Investors interested in Diversified Operations stocks are likely familiar with Honeywell (HON - Free Report) and 3M (MMM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Honeywell has a Zacks Rank of #2 (Buy), while 3M has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HON has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HON currently has a forward P/E ratio of 19.08, while MMM has a forward P/E of 19.39. We also note that HON has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MMM currently has a PEG ratio of 1.91.
Another notable valuation metric for HON is its P/B ratio of 6.48. 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, MMM has a P/B of 11.43.
Based on these metrics and many more, HON holds a Value grade of B, while MMM has a Value grade of D.
HON is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HON is likely the superior value option right now.
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HON vs. MMM: Which Stock Is the Better Value Option?
Investors interested in Diversified Operations stocks are likely familiar with Honeywell (HON - Free Report) and 3M (MMM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Honeywell has a Zacks Rank of #2 (Buy), while 3M has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HON has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HON currently has a forward P/E ratio of 19.08, while MMM has a forward P/E of 19.39. We also note that HON has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MMM currently has a PEG ratio of 1.91.
Another notable valuation metric for HON is its P/B ratio of 6.48. 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, MMM has a P/B of 11.43.
Based on these metrics and many more, HON holds a Value grade of B, while MMM has a Value grade of D.
HON is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HON is likely the superior value option right now.