Honeywell International vs 3M Which Is More Profitable?

Honeywell International and 3M are two well-known companies in the industrial sector, both offering a diverse range of products and services. Investing in their stocks can provide investors with exposure to this sector and potential growth opportunities. Honeywell has a strong track record of innovation and global presence, while 3M is known for its commitment to sustainability and research and development. Understanding the financial performance and market dynamics of these companies is essential for making informed investment decisions in their stocks.

Honeywell International or 3M?

When comparing Honeywell International 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 Honeywell International 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. Honeywell International has a dividend yield of 1.92%, while 3M has a dividend yield of 2.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Honeywell International reports a 5-year dividend growth of 6.42% year and a payout ratio of 50.54%. 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 Honeywell International P/E ratio at 26.05 and 3M's P/E ratio at 16.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Honeywell International P/B ratio is 8.51 while 3M's P/B ratio is 15.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Honeywell International has seen a 5-year revenue growth of -0.02%, while 3M's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Honeywell International's ROE at 34.10% and 3M's ROE at 96.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.87 for Honeywell International and $128.91 for 3M. Over the past year, Honeywell International's prices ranged from $189.66 to $242.77, with a yearly change of 28.00%. 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.