Bunzl (BZLFY) and 3M (MMM) Critical Survey

Bunzl (OTCMKTS: BZLFY) and 3M (NYSE:MMM) are both large-cap multi-sector conglomerates companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

How to Become a New Pot Stock Millionaire

This table compares Bunzl and 3M’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bunzl N/A N/A N/A
3M 15.35% 48.34% 16.00%

Risk & Volatility

Bunzl has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Bunzl and 3M, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bunzl 0 0 2 0 3.00
3M 4 2 8 0 2.29

Bunzl presently has a consensus target price of $45.00, suggesting a potential upside of 51.62%. 3M has a consensus target price of $250.92, suggesting a potential upside of 18.01%. Given Bunzl’s stronger consensus rating and higher probable upside, equities analysts clearly believe Bunzl is more favorable than 3M.

Dividends

Bunzl pays an annual dividend of $0.54 per share and has a dividend yield of 1.8%. 3M pays an annual dividend of $5.44 per share and has a dividend yield of 2.6%. Bunzl pays out 35.3% of its earnings in the form of a dividend. 3M pays out 59.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. 3M has increased its dividend for 59 consecutive years. 3M is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

0.2% of Bunzl shares are held by institutional investors. Comparatively, 66.9% of 3M shares are held by institutional investors. 1.0% of Bunzl shares are held by insiders. Comparatively, 0.7% of 3M shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Bunzl and 3M’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bunzl $11.06 billion 0.90 $400.17 million $1.53 19.40
3M $31.66 billion 4.00 $4.86 billion $9.17 23.19

3M has higher revenue and earnings than Bunzl. Bunzl is trading at a lower price-to-earnings ratio than 3M, indicating that it is currently the more affordable of the two stocks.

Summary

3M beats Bunzl on 13 of the 17 factors compared between the two stocks.

Bunzl Company Profile

Bunzl plc provides distribution and outsourcing services primarily in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. It provides non-food consumables, including food packaging, napkins, disposable tableware, food service disposables, guest amenities, light and heavy catering equipment, cleaning and hygiene products, and safety items to hotels, restaurants, caterers, and food processors and packers, as well as the leisure sector. The company also offers films, labels, counter-service packaging, take-out food packaging, and first aid products, as well as point of purchase displays, stationeries, bags, and cleaning and hygiene supplies to grocery stores, supermarkets, retail chains, convenience stores, food wholesalers, ethnic grocers, organic food outlets, and others. In addition, it provides cleaning systems, floor care items, hand cleansing products, hygiene papers, janitorial products, cleaning machines, mops, polishes, protective clothing, and washroom chemicals to facilities management companies, contract cleaners, and other industrial and healthcare customers. Further, the company offers a range of personal protection equipment, such as footwear, gloves, safety helmets, workwear, harness equipment, tools, safety signs, and traffic management and ancillary site equipment, as well as ear, eye, respiratory, and face protection products to customers in industrial and construction markets. Additionally, it provides aprons, bandages, facemasks, gowns, headwear, mattress covers, overshoes, procedure packs, tapes, wipes, incontinence products, and swabs to the healthcare sector, including hospitals, retirement and nursing homes, and doctors' surgeries and clinics; and various products to government and education establishments. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.

3M Company Profile

3M Company operates as a diversified technology company worldwide. The company's Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products. Its Safety and Graphics Business segment provides personal protection products, transportation safety products, commercial graphics systems, commercial cleaning and protection products, floor matting, roofing granules for asphalt shingles, and fall protection products. The company's Health Care segment offers medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. Its Electronics and Energy segment provides optical films; packaging and interconnection devices; insulating and splicing solutions; touch screens and touch monitors; renewable energy component solutions; and infrastructure protection products. The company's Consumer segment offers sponges, scouring pads, high-performance cloths, repositionable notes, indexing systems, home improvement and care products, and protective materials; and consumer and office tapes and adhesives. It serves automotive, electronics and automotive electrification, appliance, paper and printing, packaging, food and beverage, construction, medical clinics and hospitals, pharmaceuticals, dental and orthodontic practitioners, health information systems, food manufacturing and testing, consumer and office retail, office business to business, home improvement, drug and pharmacy retail, and other markets directly, as well as through wholesalers, retailers, jobbers, distributors, and dealers. The company was founded in 1902 and is headquartered in St. Paul, Minnesota.

Receive News & Ratings for Bunzl Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bunzl and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply