Seek Returns logo

MMM vs. RBC: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at MMM and RBC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMMMRBC
Company Name3M CompanyRBC Bearings Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryIndustrial ConglomeratesMachinery
Market Capitalization83.09 billion USD12.15 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962August 10, 2005
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MMM and RBC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MMM vs. RBC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMMMRBC
5-Day Price Return0.38%3.10%
13-Week Price Return1.93%1.43%
26-Week Price Return1.64%17.43%
52-Week Price Return13.02%30.15%
Month-to-Date Return-0.23%0.08%
Year-to-Date Return20.21%30.47%
10-Day Avg. Volume2.68M0.20M
3-Month Avg. Volume3.18M0.18M
3-Month Volatility22.89%21.07%
Beta1.051.75

Profitability

Return on Equity (TTM)

MMM

91.40%

Industrial Conglomerates Industry

Max
21.93%
Q3
13.64%
Median
9.41%
Q1
5.80%
Min
-3.73%

MMM’s Return on Equity of 91.40% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

RBC

8.46%

Machinery Industry

Max
33.68%
Q3
20.05%
Median
12.37%
Q1
8.67%
Min
-7.69%

RBC’s Return on Equity of 8.46% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

MMM vs. RBC: A comparison of their Return on Equity (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Net Profit Margin (TTM)

MMM

16.01%

Industrial Conglomerates Industry

Max
26.43%
Q3
13.08%
Median
9.39%
Q1
3.21%
Min
-2.43%

A Net Profit Margin of 16.01% places MMM in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.

RBC

15.20%

Machinery Industry

Max
19.72%
Q3
11.07%
Median
7.62%
Q1
5.05%
Min
-1.52%

A Net Profit Margin of 15.20% places RBC in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

MMM vs. RBC: A comparison of their Net Profit Margin (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Operating Profit Margin (TTM)

MMM

19.46%

Industrial Conglomerates Industry

Max
27.02%
Q3
17.23%
Median
12.90%
Q1
8.32%
Min
-3.91%

An Operating Profit Margin of 19.46% places MMM in the upper quartile for the Industrial Conglomerates industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RBC

22.18%

Machinery Industry

Max
26.63%
Q3
15.99%
Median
11.27%
Q1
7.72%
Min
-0.51%

An Operating Profit Margin of 22.18% places RBC in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MMM vs. RBC: A comparison of their Operating Profit Margin (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Profitability at a Glance

SymbolMMMRBC
Return on Equity (TTM)91.40%8.46%
Return on Assets (TTM)9.93%5.37%
Net Profit Margin (TTM)16.01%15.20%
Operating Profit Margin (TTM)19.46%22.18%
Gross Profit Margin (TTM)41.11%44.26%

Financial Strength

Current Ratio (MRQ)

MMM

1.72

Industrial Conglomerates Industry

Max
2.40
Q3
1.69
Median
1.35
Q1
1.14
Min
0.56

MMM’s Current Ratio of 1.72 is in the upper quartile for the Industrial Conglomerates industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

RBC

3.33

Machinery Industry

Max
3.13
Q3
2.12
Median
1.72
Q1
1.34
Min
0.77

RBC’s Current Ratio of 3.33 is exceptionally high, placing it well outside the typical range for the Machinery industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

MMM vs. RBC: A comparison of their Current Ratio (MRQ) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MMM

3.06

Industrial Conglomerates Industry

Max
2.27
Q3
1.49
Median
0.91
Q1
0.63
Min
0.24

With a Debt-to-Equity Ratio of 3.06, MMM operates with exceptionally high leverage compared to the Industrial Conglomerates industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

RBC

0.30

Machinery Industry

Max
1.56
Q3
0.79
Median
0.44
Q1
0.27
Min
0.00

RBC’s Debt-to-Equity Ratio of 0.30 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MMM vs. RBC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

MMM

-15.31

Industrial Conglomerates Industry

Max
19.80
Q3
10.68
Median
4.59
Q1
2.73
Min
-2.15

MMM has a negative Interest Coverage Ratio of -15.31. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

RBC

6.22

Machinery Industry

Max
81.58
Q3
37.68
Median
13.76
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, RBC’s Interest Coverage Ratio of 6.22 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

MMM vs. RBC: A comparison of their Interest Coverage Ratio (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolMMMRBC
Current Ratio (MRQ)1.723.33
Quick Ratio (MRQ)1.121.26
Debt-to-Equity Ratio (MRQ)3.060.30
Interest Coverage Ratio (TTM)-15.316.22

Growth

Revenue Growth

MMM vs. RBC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MMM vs. RBC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MMM

1.86%

Industrial Conglomerates Industry

Max
9.82%
Q3
5.04%
Median
3.09%
Q1
1.67%
Min
0.00%

MMM’s Dividend Yield of 1.86% is consistent with its peers in the Industrial Conglomerates industry, providing a dividend return that is standard for its sector.

RBC

0.09%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

RBC’s Dividend Yield of 0.09% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

MMM vs. RBC: A comparison of their Dividend Yield (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

MMM

39.27%

Industrial Conglomerates Industry

Max
182.48%
Q3
97.89%
Median
55.48%
Q1
31.63%
Min
1.76%

MMM’s Dividend Payout Ratio of 39.27% is within the typical range for the Industrial Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RBC

9.74%

Machinery Industry

Max
198.34%
Q3
101.42%
Median
62.79%
Q1
29.85%
Min
0.00%

RBC’s Dividend Payout Ratio of 9.74% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

MMM vs. RBC: A comparison of their Dividend Payout Ratio (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Dividend at a Glance

SymbolMMMRBC
Dividend Yield (TTM)1.86%0.09%
Dividend Payout Ratio (TTM)39.27%9.74%

Valuation

Price-to-Earnings Ratio (TTM)

MMM

21.10

Industrial Conglomerates Industry

Max
45.17
Q3
25.68
Median
15.16
Q1
8.58
Min
0.79

MMM’s P/E Ratio of 21.10 is within the middle range for the Industrial Conglomerates industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RBC

48.21

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

At 48.21, RBC’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Machinery industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

MMM vs. RBC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

MMM

3.38

Industrial Conglomerates Industry

Max
4.18
Q3
2.15
Median
0.69
Q1
0.41
Min
0.09

MMM’s P/S Ratio of 3.38 is in the upper echelon for the Industrial Conglomerates industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

RBC

7.33

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

With a P/S Ratio of 7.33, RBC trades at a valuation that eclipses even the highest in the Machinery industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MMM vs. RBC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

MMM

18.90

Industrial Conglomerates Industry

Max
5.44
Q3
2.68
Median
0.97
Q1
0.52
Min
0.04

At 18.90, MMM’s P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

RBC

3.89

Machinery Industry

Max
7.29
Q3
4.06
Median
2.67
Q1
1.54
Min
0.52

RBC’s P/B Ratio of 3.89 is within the conventional range for the Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

MMM vs. RBC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Industrial Conglomerates and Machinery industry benchmarks.

Valuation at a Glance

SymbolMMMRBC
Price-to-Earnings Ratio (TTM)21.1048.21
Price-to-Sales Ratio (TTM)3.387.33
Price-to-Book Ratio (MRQ)18.903.89
Price-to-Free Cash Flow Ratio (TTM)31.1147.02