HC2 (NYSE: HCHC) and 3M (NYSE:MMM) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Earnings and Valuation
This table compares HC2 and 3M’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HC2||$1.56 billion||0.16||-$94.54 million||($2.58)||-2.31|
|3M||$30.11 billion||4.71||$5.05 billion||$8.95||26.59|
This is a breakdown of current ratings and price targets for HC2 and 3M, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HC2 currently has a consensus target price of $11.50, suggesting a potential upside of 92.95%. 3M has a consensus target price of $235.09, suggesting a potential downside of 1.22%. Given HC2’s stronger consensus rating and higher possible upside, equities analysts clearly believe HC2 is more favorable than 3M.
3M pays an annual dividend of $4.70 per share and has a dividend yield of 2.0%. HC2 does not pay a dividend. 3M pays out 52.5% of its earnings in the form of a dividend. HC2 has increased its dividend for 58 consecutive years.
This table compares HC2 and 3M’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
59.9% of HC2 shares are owned by institutional investors. Comparatively, 66.3% of 3M shares are owned by institutional investors. 16.0% of HC2 shares are owned by company insiders. Comparatively, 0.6% of 3M shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
HC2 has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
3M beats HC2 on 11 of the 16 factors compared between the two stocks.
HC2 Holdings, Inc. engages in construction, marine services, insurance, telecommunications, energy, life sciences, and other businesses in the United States, the United Kingdom, and internationally. The company fabricates and erects structural steel for commercial and industrial construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, and power plants. It also fabricates trusses and girders; and fabricates and erects water pipes, water storage tanks, pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators, and various customized products. In addition, the company provides subsea cable installation and maintenance services for the telecommunications sector; installation, maintenance, and repair services for fiber optic communication and power infrastructure to offshore platforms; and installation services for power cables for use in offshore wind farms and in the offshore wind market. Further, it distributes natural gas motor fuels; designs, builds, owns, acquires, operates, and maintains compressed natural gas fueling stations for transportation vehicles; and offers voice communication services for national telecommunications, mobile, prepaid, and voice over Internet protocol service operators, as well as wholesale carriers and Internet service providers. Additionally, the company provides long-term care, life, and annuity insurance products to individuals. Furthermore, it focuses on developing products to treat early osteoarthritis of the knee; develops skin lightening technology; owns licenses to create and distribute NASCAR video games; and offers analytics on broadcast TV, digital, and social media online platforms. The company was formerly known as PTGi Holding Inc. and changed its name to HC2 Holdings, Inc. in April 2014. HC2 Holdings, Inc. was founded in 1994 and is headquartered in New York, New York.
3M Company is a technology company. It operates through five segments. The Industrial segment serves a range of markets, such as automotive original equipment manufacturer and automotive aftermarket, , appliance, paper and printing, packaging, food and beverage, and construction. The Safety and Graphics segment serves a range of markets for the safety, security and productivity of people, facilities and systems. The Health Care segment serves markets that include medical clinics and hospitals, pharmaceuticals, health information systems, and food manufacturing and testing. The Consumer segment serves markets that include consumer retail, office business to business, home improvement, drug and pharmacy retail, and other markets.
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