Boston Scientific vs 3M Which Is a Smarter Choice?

Boston Scientific and 3M are two well-known companies in the healthcare and technology sectors, each with their own unique set of strengths and weaknesses. Boston Scientific is a leader in medical devices and has consistently shown strong growth and innovation. On the other hand, 3M is a diversified conglomerate with a long history of success in various industries. Both companies have loyal investor bases and have performed well in the stock market, making them attractive options for investors looking to diversify their portfolios.

Boston Scientific or 3M?

When comparing Boston Scientific and 3M, 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 Boston Scientific and 3M.

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. Boston Scientific has a dividend yield of -%, while 3M has a dividend yield of 2.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Boston Scientific reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.29%. On the other hand, 3M reports a 5-year dividend growth of 4.81% year and a payout ratio of 55.40%.

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 Boston Scientific P/E ratio at 74.43 and 3M's P/E ratio at 16.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Boston Scientific P/B ratio is 6.43 while 3M's P/B ratio is 15.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Boston Scientific has seen a 5-year revenue growth of 0.38%, while 3M's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Boston Scientific's ROE at 8.91% and 3M's ROE at 96.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $90.32 for Boston Scientific and $128.77 for 3M. Over the past year, Boston Scientific's prices ranged from $54.95 to $91.93, with a yearly change of 67.30%. 3M's prices fluctuated between $75.65 and $141.34, with a yearly change of 86.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.