Graham Holdings Company (GHC) vs 3M Company (MMM)

Graham Holdings Company and 3M Company are both Conglomerates companies. 3M Company is the larger, with a market value of $90.1B against $5.0B — 18.2× the size. Graham Holdings Company trades at the lower P/E: 10.5× against 26.5×. Graham Holdings Company grew revenue faster over the last twelve months: 4.26% against 1.70%. 3M Company has the higher net margin (14.0% vs 9.66%) and the higher return on invested capital (21.1% vs 3.88%). Both pay a dividend; 3M Company yields more (1.71% vs 0.62%). Across the 23 metrics below, Graham Holdings Company leads on 14 and 3M Company on 9.

Valuation

Metric GHC MMM Conglomerates median
P/E 10.47 26.52 10.53
P/S 0.99 3.68 0.64
P/B 1.06 22.28 1.14
Price to free cash flow 28.98 34.18 15.31
EV/EBITDA 10.10 16.67 10.37
EV/Sales 0.92 4.07 1.25
Earnings yield 9.55% 3.77% 1.02%
Free cash flow yield 3.45% 2.93% 0.00%

Profitability

Metric GHC MMM Conglomerates median
Gross margin 30.02% 39.53% 30.27%
Operating margin 5.37% 18.75% 3.36%
Net margin 9.66% 14.01% 0.59%
Free cash flow margin 3.42% 10.76% (0.12%)
Return on equity 10.62% 79.96% 0.30%
Return on assets 6.12% 9.17% 0.06%
Return on invested capital 3.88% 21.11% 0.73%

Growth

Metric GHC MMM Conglomerates median
Revenue growth (TTM) 4.26% 1.70% 8.17%
EPS growth (last fiscal year) (59.32%) (20.53%) 12.05%
Revenue growth, 5-year CAGR 11.20% (4.97%) 6.85%
Net income growth, 5-year CAGR (0.54%) (9.82%) 0.00%

Health

Metric GHC MMM Conglomerates median
Debt to equity 0.18 3.60 0.46
Current ratio 1.76 1.41 1.71
Net debt to EBITDA (1.24) 1.12 1.17

Dividend

Metric GHC MMM Conglomerates median
Dividend yield 0.62% 1.71% 2.58%
Payout ratio 0.07 0.46 0.36

Size

Metric GHC MMM Conglomerates median
Market cap 4.95b 90.09b 389.84m

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