Head to Head Review: 3M (NYSE:MMM) & Grupo Mexico (OTCMKTS:GMBXF)

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

Insider & Institutional Ownership

65.3% of 3M shares are owned by institutional investors. 0.3% of 3M shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Grupo Mexico and 3M, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Mexico	0	2	1	0	2.33
3M	1	2	9	0	2.67

3M has a consensus price target of $164.10, suggesting a potential upside of 3.57%. Given 3M’s stronger consensus rating and higher possible upside, analysts clearly believe 3M is more favorable than Grupo Mexico.

Volatility & Risk

Grupo Mexico has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Earnings and Valuation

This table compares Grupo Mexico and 3M”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Mexico	N/A	N/A	N/A	N/A	N/A
3M	$24.58 billion	3.43	$4.17 billion	$7.19	22.04

3M has higher revenue and earnings than Grupo Mexico.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grupo Mexico	N/A	N/A	N/A
3M	16.01%	96.48%	10.62%

Summary

3M beats Grupo Mexico on 10 of the 10 factors compared between the two stocks.

About Grupo Mexico

Grupo México, S.A.B. de C.V. engages in copper production, cargo transportation, and infrastructure businesses worldwide. The company operates through Mining, Transportation, and Infrastructure divisions. The Mining division explores for copper, silver, molybdenum, zinc, sulfuric acid, gold, and selenium. It owns interests in 14 underground and open pit mines, and 8 exploration projects in Mexico, Peru, the United States, Argentina, Chile, Ecuador, and Spain. The Transportation division offers railroad transportation services, including general and intermodal freight services by railroad; passenger transportation services; and auxiliary terminal management and intra-terminal hauling services. This division provides railroad services for the agriculture, automotive, cement, energy, intermodal, metals and minerals, industrial products, and chemical and fertilizer sectors. It operates a railroad network of 11,137 km across 24 states in Mexico. The Infrastructure division offers land and ocean drilling services; and engineering services. It also generates energy through a combined cycle plant and wind farm; and constructs, operates, and maintains Salamanca-León highway and Silao Bypas. Grupo México, S.A.B. de C.V. was founded in 1890 and is based in Mexico City, Mexico.

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.