3M vs XPEL Which Is a Better Investment?

3M and XPEL are both reputable companies in the automotive industry, known for their high-quality products and innovative solutions. 3M, a multinational conglomerate, has a long-standing history of producing a wide range of products, including automotive protective films. On the other hand, XPEL specializes in paint protection films and other surface protection solutions for vehicles. Both companies have a strong presence in the market and have shown steady growth in their stock prices over the years. Investors often compare the two companies' stocks to determine which may be a better investment option.

3M or XPEL?

When comparing 3M and XPEL, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between 3M and XPEL.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. 3M has a dividend yield of 2.78%, while XPEL has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. 3M reports a 5-year dividend growth of 4.81% year and a payout ratio of 55.40%. On the other hand, XPEL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with 3M P/E ratio at 16.29 and XPEL's P/E ratio at 25.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. 3M P/B ratio is 15.41 while XPEL's P/B ratio is 5.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, 3M has seen a 5-year revenue growth of 0.06%, while XPEL's is 2.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with 3M's ROE at 96.32% and XPEL's ROE at 24.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $128.91 for 3M and $43.60 for XPEL. Over the past year, 3M's prices ranged from $75.65 to $141.34, with a yearly change of 86.83%. XPEL's prices fluctuated between $30.75 and $60.49, with a yearly change of 96.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.