Neogen vs 3M Which Should You Buy?

Neogen Corporation and 3M Company are both leading companies in the healthcare and biotechnology industries, but they have distinct differences in their business models and market strategies. Neogen specializes in food safety testing and animal health products, while 3M is known for its diversified product offerings in the fields of healthcare, automotive, and consumer goods. Investors interested in these stocks should carefully analyze each company's financial performance, growth potential, and competitive advantages to make informed decisions about their investment portfolios.

Neogen or 3M?

When comparing Neogen 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 Neogen 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. Neogen has a dividend yield of -%, while 3M has a dividend yield of 2.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Neogen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Neogen P/E ratio at -130.57 and 3M's P/E ratio at 16.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Neogen P/B ratio is 0.98 while 3M's P/B ratio is 15.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Neogen has seen a 5-year revenue growth of 0.12%, while 3M's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Neogen's ROE at -0.75% and 3M's ROE at 96.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.91 for Neogen and $132.04 for 3M. Over the past year, Neogen's prices ranged from $11.46 to $20.89, with a yearly change of 82.29%. 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.