3M vs Union Pacific
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KIRA’s take AI analyst
I put 3M and Union Pacific side by side, using each one’s latest annual report. Here is what stands out:
- 3M is the larger business, with $24.9B of revenue in fiscal 2025 against $24.5B for Union Pacific.
- Union Pacific kept more of each dollar of sales as operating profit (40.2% operating margin, against 18.6%).
- Union Pacific turned more of its sales into free cash flow (22.4% FCF margin, against 5.6%).
- 3M earned a higher return on the capital invested in it (34.2%, against 15.9%).
- Investors pay more for each dollar of 3M’s earnings: a P/E of 25.8x against 23.1x for Union Pacific.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
3M
MMM
4/10
Revenue growthReturn on capitalReturn on equityNet debt / EBITDA
Union Pacific
UNP
6/10
5-year growthOperating marginNet marginFCF marginPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | MMM FY25 | UNP FY25 |
|---|---|---|
| Size | ||
| Market cap | $90.3B | $176.5B |
| Revenue | $24.9B | $24.5B |
| Free cash flow | $1.4B | $5.5B |
| Net income | $3.3B | $7.1B |
| Growth | ||
| Revenue growth | 1.5% | 1.1% |
| 5-year growth | −5.0% | 4.6% |
| Share count change | −2.0% | −2.1% |
| Profitability | ||
| Gross margin | 39.9% | — |
| Operating margin | 18.6% | 40.2% |
| Net margin | 13.0% | 29.1% |
| FCF margin | 5.6% | 22.4% |
| Return on capital | 34.2% | 15.9% |
| Return on equity | 76.1% | 40.4% |
| Balance sheet | ||
| Net debt | $6.7B | $30.7B |
| Net debt / EBITDA | 1.1x | 2.5x |
| Dividends and buybacks | $4.8B | $5.9B |
| Valuation & quality | ||
| P/E | 25.8x | 23.1x |
| Piotroski F-score | 5 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.