Reviewing 3M Company (MMM)’s and IDEX Corporation (NYSE:IEX)’s results

We will be comparing the differences between 3M Company (NYSE:MMM) and IDEX Corporation (NYSE:IEX) as far as institutional ownership, profitability, risk, analyst recommendations, dividends, earnings and valuation are concerned. The two businesses are rivals in the Diversified Machinery industry.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3M Company 32.76B 3.69 5.35B 9.08 21.83
IDEX Corporation 2.48B 4.38 410.57M 5.62 23.92

Table 1 shows the gross revenue, earnings per share and valuation for 3M Company and IDEX Corporation. IDEX Corporation has lower revenue and earnings than 3M Company. Business that presently has a lower P/E ratio means that it is the more affordable of the two businesses. 3M Company’s shares have been trading at lower P/E ratio which means it is presently more affordable than IDEX Corporation.

Profitability

Table 2 provides 3M Company and IDEX Corporation’s return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
3M Company 16.33% 41.9% 12%
IDEX Corporation 16.56% 20.4% 11.7%

Volatility and Risk

3M Company’s 1.15 beta indicates that its volatility is 15.00% more volatile than that of Standard & Poor’s 500. From a competition point of view, IDEX Corporation has a 1.32 beta which is 32.00% more volatile compared to Standard & Poor’s 500.

Liquidity

The Current Ratio of 3M Company is 2 while its Quick Ratio stands at 1.4. The Current Ratio of rival IDEX Corporation is 3.2 and its Quick Ratio is has 2.4. IDEX Corporation is better equipped to clear short and long-term obligations than 3M Company.

Dividends

The annual dividend that 3M Company pay is $5.44 per share with a dividend yield of 2.63%. Meanwhile, IDEX Corporation’s annual dividend is $1.72 per share and it also boasts of a 1.2% dividend yield.

Analyst Recommendations

3M Company and IDEX Corporation Recommendations and Ratings are available in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
3M Company 1 3 3 2.43
IDEX Corporation 0 1 3 2.75

The upside potential is 1.97% for 3M Company with consensus target price of $213.86. Meanwhile, IDEX Corporation’s consensus target price is $146, while its potential upside is 2.84%. The information presented earlier suggests that IDEX Corporation looks more robust than 3M Company as far as analyst view.

Insider & Institutional Ownership

Roughly 68.4% of 3M Company shares are held by institutional investors while 98.7% of IDEX Corporation are owned by institutional investors. 7.74% are 3M Company’s share held by insiders. Comparatively, insiders own roughly 0.3% of IDEX Corporation’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
3M Company -4.62% -1.48% -6.86% -3.32% -17.47% -15.74%
IDEX Corporation -2.2% -3% -11.89% -6.28% 1.57% 1.83%

For the past year 3M Company had bearish trend while IDEX Corporation had bullish trend.

3M Company operates as a diversified technology company worldwide. The companyÂ’s Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; advanced ceramics; sealants; specialty materials; separation and purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products. Its Safety and Graphics Business segment provides personal protection products, traffic safety and security products, commercial graphics systems, commercial cleaning and protection products, floor matting, roofing granules for asphalt shingles, and fall protection products. The companyÂ’s Health Care segment offers medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. Its Electronics and Energy segment provides optical films; packaging and interconnection devices; insulating and splicing solutions; touch screens and touch monitors; renewable energy component solutions; and infrastructure protection products. The companyÂ’s Consumer segment offers sponges, scouring pads, high-performance cloths, repositionable notes, indexing systems, home improvement and care products, protective materials, and consumer and office tapes and adhesives. The company serves automotive, electronics and energy, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets directly, as well as through wholesalers, retailers, jobbers, distributors, and dealers. The company was founded in 1902 and is headquartered in St. Paul, Minnesota.

IDEX Corporation, through its subsidiaries, provides various pumps, flow meters, other fluidics systems and components, and engineered products worldwide. Its Fluid & Metering Technologies segment designs, produces, and distributes positive displacement pumps, flow meters, injectors, other fluid-handling pump modules and systems, and specialty valve products, as well as offers flow monitoring and other services for food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The company's Health & Science Technologies segment designs, produces, and distributes precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction, and drying systems for use in beverage, food processing, pharmaceutical, and cosmetics; pneumatic components and sealing solutions, such as pumping solutions for analytical instrumentation, clinical diagnostics, and drug discovery; biocompatible medical devices and implantables; and air compressors for medical, dental, and industrial applications. It also provides optical components and coatings for scientific research, defense, biotechnology, life sciences, aerospace, telecommunications, and electronics manufacturing applications; laboratory and commercial equipment for the production of micro and nano scale materials; precision photonic solutions for life sciences, research, and defense markets; and precision gear and peristaltic pump technologies. The company's Fire & Safety/Diversified Products segment offers firefighting pumps and controls, apparatus valves, monitors, nozzles, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants, as well as paints for use in retail and commercial businesses. The company was founded in 1987 and is based in Lake Forest, Illinois.