Carlisle Companies (NYSE: CSL) and 3M (NYSE:MMM) are both mid-cap multi-sector conglomerates companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitabiliy and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Carlisle Companies and 3M, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carlisle Companies 0 3 3 0 2.50
3M 2 4 6 0 2.33

Carlisle Companies currently has a consensus target price of $125.00, suggesting a potential upside of 26.74%. 3M has a consensus target price of $201.50, suggesting a potential downside of 2.39%. Given Carlisle Companies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Carlisle Companies is more favorable than 3M.

Valuation and Earnings

This table compares Carlisle Companies and 3M’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Carlisle Companies $3.81 billion 1.64 $723.50 million $3.53 27.94
3M $30.53 billion 4.04 $8.53 billion $8.77 23.54

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

Dividends

Carlisle Companies pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. 3M pays an annual dividend of $4.70 per share and has a dividend yield of 2.3%. Carlisle Companies pays out 39.7% of its earnings in the form of a dividend. 3M pays out 53.6% 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. Carlisle Companies has increased its dividend for 40 consecutive years and 3M has increased its dividend for 58 consecutive years. 3M is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Carlisle Companies has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Institutional and Insider Ownership

95.2% of Carlisle Companies shares are held by institutional investors. Comparatively, 65.8% of 3M shares are held by institutional investors. 2.1% of Carlisle Companies shares are held by insiders. Comparatively, 0.6% of 3M shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Carlisle Companies 6.04% 15.18% 9.26%
3M 17.65% 47.83% 16.07%

Summary

3M beats Carlisle Companies on 12 of the 17 factors compared between the two stocks.

Carlisle Companies Company Profile

Carlisle Companies Incorporated is a manufacturing company. The Company designs, manufactures and markets a range of products that serve a range of markets, including commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, medical technology, transportation, general industrial, protective coatings, wood, auto refinishing, foodservice, and healthcare and sanitary maintenance. The Company operates through five segments: Carlisle Construction Materials (Construction Materials); Carlisle Interconnect Technologies (Interconnect Technologies); Carlisle Fluid Technologies (Fluid Technologies); Carlisle Brake & Friction (Brake & Friction), and Carlisle FoodService Products (FoodService Products). The Company markets its products as a component supplier to original equipment manufacturers and distributors, among others.

3M Company Profile

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, electronics, 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 Electronics and Energy segment serves customers in electronics and energy markets, including solutions for the performance of electronic devices; electrical products, including infrastructure protection, and power generation and distribution. 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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