Financial Review: 3M (NYSE:MMM) versus Lombard Medical (OTCMKTS:EVARF)

3M (NYSE:MMM) and Lombard Medical (OTCMKTS:EVARF) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for 3M and Lombard Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
3M	2	2	12	0	2.63
Lombard Medical	0	0	0	0	0.00

3M presently has a consensus target price of $148.87, suggesting a potential downside of 4.11%. Given Lombard Medical’s higher possible upside, analysts clearly believe Lombard Medical is more favorable than 3M.

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares 3M and Lombard Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
3M	$24.58 billion	3.43	$4.17 billion	$7.55	20.56
Lombard Medical	N/A	N/A	N/A	N/A	N/A

3M has higher revenue and earnings than Lombard Medical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
3M	15.71%	100.77%	9.84%
Lombard Medical	N/A	N/A	N/A

Summary

3M beats Lombard Medical on 8 of the 9 factors compared between the two stocks.

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.

About Lombard Medical

Lombard Medical, Inc., a medical technology company, develops, manufactures, and markets endovascular stent-grafts for the repair of aortic aneurysms in the United States, the United Kingdom, Germany, Japan, and internationally. The company’s principal product is Aorfix, which is an endovascular stent-graft for the treatment of abdominal aortic aneurysms (AAAs) with angulation at the neck of the aneurysm of up to 90 degrees. Its products also include Altura endovascular stent graft system for the treatment of standard AAA anatomies; Aorflex delivery system for accurate placement of Aorfix in the abdominal aorta; and IntelliFlex LP delivery system that enhances the precision and control of Aorfix deployment and placement. Lombard Medical, Inc. sells its products directly through its direct sales force and distributors to state-or-government-owned hospitals. The company was founded in 2000 and is headquartered in Didcot, the United Kingdom.