Reviewing Ck Hutchison (OTCMKTS:CKHUY) and 3M (NYSE:MMM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ck Hutchison	N/A	N/A	N/A
3M	13.70%	98.47%	11.05%

Risk & Volatility

Ck Hutchison has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, 3M has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ck Hutchison and 3M”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ck Hutchison	$36.07 billion	0.75	$2.19 billion	N/A	N/A
3M	$24.83 billion	3.67	$4.17 billion	$6.26	27.39

3M has lower revenue, but higher earnings than Ck Hutchison.

Analyst Recommendations

This is a breakdown of recent ratings for Ck Hutchison and 3M, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ck Hutchison	0	0	0	1	4.00
3M	1	2	8	0	2.64

3M has a consensus target price of $175.10, indicating a potential upside of 2.12%. Given 3M’s higher possible upside, analysts plainly believe 3M is more favorable than Ck Hutchison.

Insider and Institutional Ownership

65.3% of 3M shares are held by institutional investors. 0.3% of 3M shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Ck Hutchison pays an annual dividend of $0.14 per share and has a dividend yield of 2.0%. 3M pays an annual dividend of $2.92 per share and has a dividend yield of 1.7%. 3M pays out 46.6% of its earnings in the form of a dividend. 3M has raised its dividend for 1 consecutive years.

Summary

3M beats Ck Hutchison on 11 of the 16 factors compared between the two stocks.

About Ck Hutchison

CK Hutchison Holdings Limited, an investment holding company, primarily operates in ports and related services, retail, infrastructure, and telecommunications businesses in Hong Kong and internationally. The company operates through four segments: Ports and Related Services, Retail, Infrastructure, and Telecommunications. It invests in, develops, and operates ports, which operate 293 berths in 53 ports spanning 24 countries; and provides logistics and transportation-related services, such as cruise ship terminals, distribution centers, rail services, and ship repair facilities. The company also operates retail brands with stores that offer personal care, health and beauty products, food and fine wines, consumer electronics, and electrical appliances, as well as operates supermarkets under Watsons, PARKnSHOP, and FORTRESS brands; and manufactures and distributes bottled water and other beverages under the Watsons Water and Mr. Juicy brands. In addition, it invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and other infrastructure related businesses. Further, the company provides mobile telecommunications and data services, as well as operates as an integrated energy company. Additionally, it researches, develops, manufactures, commercializes, markets, and sells nutraceuticals, pharmaceuticals, and agriculture-related products; provides marine construction and ship repair yard, general engineering, and tug operations, water supply and sewerage, electricity generation and distribution, gas distribution, and aircraft maintenance services; and leases rolling stocks. The company was founded in 1828 and is based in Central, Hong Kong.

About 3M

3M Company provides diversified technology services in the United States and internationally. The company’s Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. Its Transportation and Electronics segment provides ceramic solutions; attachment/bonding products, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; semiconductor production materials; data centers solutions; and reflective signage for highway, and vehicle safety. The company’s Consumer segment provides consumer bandages, braces, supports, and consumer respirators; home cleaning products; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M Company was founded in 1902 and is headquartered in Saint Paul, Minnesota.