WallStSmart

3M Company (MMM)vsPenske Automotive Group Inc (PAG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 27% more annual revenue ($31.72B vs $25.02B). MMM leads profitability with a 11.1% profit margin vs 2.9%. MMM appears more attractively valued with a PEG of 1.50. MMM earns a higher WallStSmart Score of 56/100 (C).

MMM

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 8.0Value: 4.7Quality: 5.5
Piotroski: 5/9Altman Z: 2.82

PAG

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 5.3Quality: 4.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MMMSignificantly Overvalued (-31.4%)

Margin of Safety

-31.4%

Fair Value

$131.53

Current Price

$143.29

$11.76 premium

UndervaluedFair: $131.53Overvalued
PAGFair Value (-1.7%)

Margin of Safety

-1.7%

Fair Value

$170.26

Current Price

$173.81

$3.55 premium

UndervaluedFair: $170.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MMM3 strengths · Avg: 9.0/10
Return on EquityProfitability
71.5%10/10

Every $100 of equity generates 72 in profit

Market CapQuality
$74.98B9/10

Large-cap with strong market position

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

PAG2 strengths · Avg: 8.0/10
P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

MMM4 concerns · Avg: 3.0/10
P/E RatioValuation
27.7x4/10

Moderate valuation

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Price/BookValuation
22.9x2/10

Trading at 22.9x book value

EPS GrowthGrowth
-39.7%2/10

Earnings declined 39.7%

PAG4 concerns · Avg: 3.3/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Debt/EquityHealth
1.563/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : MMM

The strongest argument for MMM centers on Return on Equity, Market Cap, Operating Margin.

Bull Case : PAG

The strongest argument for PAG centers on P/E Ratio, Price/Book.

Bear Case : MMM

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

Bear Case : PAG

The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

MMM carries more volatility with a beta of 1.09 — expect wider price swings.

MMM is growing revenue faster at 1.3% — sustainability is the question.

MMM generates stronger free cash flow (349M), providing more financial flexibility.

Monitor CONGLOMERATES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MMM scores higher overall (56/100 vs 51/100). Both earn "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.

Visit Website →

Penske Automotive Group Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.

Visit Website →

Want to dig deeper into these stocks?