Eye On Conglomerates: GE Is A Buy, 3M Is A Hold

Tue, 12/13/2011 - 09:02 EDT - Seeking Alpha

By Takeover Analyst:In an earlier article, I argued that 3M has significant upside and could benefit from a strategic restructuring. Since the piece was published, the stock has appreciated by 11.1% and, at this point, I feel the risk/reward is no longer so favorable for the firm. On the other hand, I believe that GE represents an attractive value play with strong growth in tech and energy infrastructure. This overall sentiment is shared by the Street where shares of 3M are rated a "hold" and those of GE a "strong buy". From a multiples perspective, GE is the cheaper of the two companies. It trades at a respective 13.8x and 10.7x past and forward earnings while offering an impressive dividend yield of 3.6%. 3M, on the other hand, trades at a respective 14x and 13.1x past and forward earnings while offering a dividend yield of 2.7%. With an overly aggressive sales goalComplete Story »

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Eye On Conglomerates: GE Is A Buy, 3M Is A Hold

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