WallStSmart

3M Company (MMM)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 182% more annual revenue ($70.30B vs $24.95B). MS leads profitability with a 24.0% profit margin vs 13.0%. MMM appears more attractively valued with a PEG of 1.43. MS earns a higher WallStSmart Score of 76/100 (B+).

MMM

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 7.0Value: 7.3Quality: 5.5
Piotroski: 5/9Altman Z: 2.82

MS

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 10.0Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MMMSignificantly Overvalued (-323.6%)

Margin of Safety

-323.6%

Fair Value

$40.80

Current Price

$148.05

$107.25 premium

UndervaluedFair: $40.80Overvalued
MSUndervalued (+59.3%)

Margin of Safety

+59.3%

Fair Value

$407.18

Current Price

$165.65

$241.53 discount

UndervaluedFair: $407.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MMM3 strengths · Avg: 9.0/10
Return on EquityProfitability
75.5%10/10

Every $100 of equity generates 76 in profit

Market CapQuality
$77.25B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.33B8/10

Generating 1.3B in free cash flow

MS6 strengths · Avg: 8.8/10
Market CapQuality
$263.03B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

Areas to Watch

MMM4 concerns · Avg: 2.8/10
Price/BookValuation
16.7x4/10

Trading at 16.7x book value

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

EPS GrowthGrowth
-19.9%2/10

Earnings declined 19.9%

Debt/EquityHealth
2.751/10

Elevated debt levels

MS3 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.60B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : MMM

The strongest argument for MMM centers on Return on Equity, Market Cap, Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : MMM

The primary concerns for MMM are Price/Book, Revenue Growth, EPS Growth. Debt-to-equity of 2.75 is elevated, increasing financial risk.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

MMM profiles as a value stock while MS is a mature play — different risk/reward profiles.

MS carries more volatility with a beta of 1.21 — expect wider price swings.

MS is growing revenue faster at 11.0% — sustainability is the question.

MMM generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

MS scores higher overall (76/100 vs 54/100), backed by strong 24.0% margins and 11.0% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

3M Company

INDUSTRIALS · CONGLOMERATES · USA

The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.

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Morgan Stanley

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.

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