<div id="readability-page-1">Money Markets Buy HON Stock Or 3M Stock?  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Dec 05, 2025, 08:00am EST Share Save Comment  SHANGHAI, CHINA - 2025/11/08: The Honeywell logo is presented at the 8th China International Import Expo. (Photo by Sheldon Cooper/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images 3M stock has risen by 33% this year, fueled by a mix of strategic and operational enhancements, including a successful strategic turnaround that focuses on cost reductions and transitioning the product mix towards higher-margin offerings. Significant contributing factors encompass robust financial performance, with the company consistently exceeding analyst expectations for earnings and revenue. This momentum has resulted in raised guidance, with the firm increasing its full-year 2025 adjusted EPS forecast for the second time in October. Moreover, the recent resolution of litigation overhang through substantial settlements (PFAS and earplugs) has alleviated investor uncertainty, supported by aggressive new product innovations and enhanced operational discipline.  On the other hand, Honeywell stock has decreased by 9% during the same timeframe. This decline has occurred despite the company’s generally strong financial results and is mainly attributed to several investor concerns. A key issue is apprehension regarding growth, with certain analysts suggesting that while fundamentals remain solid, the anticipated company split is not expected to boost growth.  The stock has also responded negatively to mixed earnings announcements. The company faces margin pressures due to significant operational cost increases reported in the first half of the year. The strategy to divide into three separate companies has introduced complexity and uncertainty, contributing to a decline at the beginning of the year, with the spin-off of the advanced materials unit, Solstice, likely to adversely affect sales and free cash flow in 2025. Consequently, HON stock has been underperforming compared to sector performance, lagging behind peers and the broader Industrial Select Sector SPDR Fund (XLI).  However, here’s the catch. Despite 3M's remarkable stock outperformance this year, Honeywell currently seems to be the more appealing investment choice over 3M. This conclusion is drawn from the assertion that HON stock provides superior revenue growth across critical periods, improved profitability, and a comparatively lower valuation in relation to MMM.  That said, if you are looking for growth with less volatility than holding an individual stock such as HON or MMM, consider the High Quality Portfolio . It has consistently outperformed its benchmark—a combination of the S&amp;P 500, Russell, and S&amp;P MidCap indexes—and has achieved returns exceeding 105% since its inception. Why is that? As a collective, HQ Portfolio stocks have delivered better returns with lower risk compared to the benchmark index; a smoother experience, as demonstrated in HQ Portfolio performance metrics.  MORE FOR YOU Honeywell demonstrates superior revenue growth across key intervals, enhanced profitability, and a relatively lower valuation compared to 3M:  HON’s quarterly revenue growth was 7.0%, compared to MMM's 3.5%.  Additionally, its last 12 months revenue growth registered at 7.5%, ahead of MMM’s 1.1%.  HON’s 3-year average margin is more robust: 19.5% against MMM's 1.1%.  These disparities become even more pronounced when you analyze the financials in parallel.  The table illustrates how MMM's fundamentals compare with those of HON regarding growth, margins, momentum, and valuation multiples.  Valuation &amp; Performance Overview Valuation &amp; Performance Overview Trefis Note: For the &#34;Last 3 Year Return&#34; metric, preferred stock is one with higher returns unless the returns are too high (&gt;300%), which creates a risk of sell-off.  See more revenue details:  MMM Revenue Comparison  HON Revenue Comparison  See more margin details:  MMM Operating Income Comparison  HON Operating Income Comparison  See detailed fundamentals on Buy or Sell HON Stock and Buy or Sell MMM Stock . Below, we compare market return and related metrics over the years.  Historical Market Performance Historical Market Performance Trefis No matter how impressive the figures are, investing in stocks is never a seamless journey. There is always a risk that needs to be considered. Review HON Dip Buyer Analyses to understand how the stock has declined and rebounded historically.  Still uncertain about MMM or HON? Think about adopting a portfolio approach.  A Multi-Asset Portfolio Beats Picking Stocks Alone Markets react differently; however, a diversified asset mix mitigates volatility. A multi-asset portfolio ensures consistent investment and lessens the effects of sharp declines in any particular sector.  The asset allocation model of Trefis’ Boston-based wealth management partner generated positive returns during the 2008-09 crisis when the S&amp;P plummeted by over 40%. Our partner’s strategy now includes the Trefis High Quality Portfolio , which has a proven history of comfortably surpassing its benchmark, including the S&amp;P 500, S&amp;P MidCap, and Russell 2000 indices.  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

<p>The article compares Honeywell (HON) and 3M (MMM) stocks, highlighting 3M's 33% rise due to strategic improvements and litigation resolutions, while Honeywell's stock fell by 9% amid investor concerns and operational cost pressures. Despite 3M's performance, Honeywell is seen as a better investment due to superior revenue growth, profitability, and lower valuation. The article suggests considering a diversified portfolio for less volatility.</p>