Critical Analysis: 3M (NYSE:MMM) versus Pulse Biosciences (NASDAQ:PLSE)

Pulse Biosciences (NASDAQ:PLSE) and 3M (NYSE:MMM) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulse Biosciences	$700,000.00	1,293.05	-$42.21 million	($0.81)	-20.23
3M	$32.61 billion	2.30	-$7.00 billion	($12.72)	-10.67

Pulse Biosciences has higher earnings, but lower revenue than 3M. Pulse Biosciences is trading at a lower price-to-earnings ratio than 3M, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Pulse Biosciences and 3M, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulse Biosciences	0	0	0	0	N/A
3M	2	4	8	0	2.43

3M has a consensus price target of $127.64, indicating a potential downside of 5.97%. Given 3M’s higher probable upside, analysts plainly believe 3M is more favorable than Pulse Biosciences.

Institutional & Insider Ownership

76.9% of Pulse Biosciences shares are owned by institutional investors. Comparatively, 65.3% of 3M shares are owned by institutional investors. 71.5% of Pulse Biosciences shares are owned by insiders. Comparatively, 0.3% of 3M shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pulse Biosciences	N/A	-108.70%	-80.89%
3M	3.08%	112.92%	10.52%

Risk & Volatility

Pulse Biosciences has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, 3M has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Summary

3M beats Pulse Biosciences on 7 of the 13 factors compared between the two stocks.

About Pulse Biosciences

Pulse Biosciences, Inc. operates as a novel bioelectric medicine company. The company offers CellFX System, a tunable, software-enabled, and console-based platform that delivers nano second duration pulses of electrical energy to non-thermally clear targeted cells while sparing adjacent non-cellular tissue to treat a various medical condition by using its Nano-Pulse Stimulation technology. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. Pulse Biosciences, Inc. was incorporated in 2014 and is headquartered in Hayward, California.

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.