These two stocks have not covered themselves in glory over the last few years. Multi-industry industrial 3M (NYSE: MMM) and West Coast railroad Union Pacific (NYSE: UNP) have underperformed the S&P 500 over the last three and five years. Both have been toward the bottom of their respective peer groups, too. Moreover, their operational performance has also fallen behind their rivals. So which company stands better placed to deliver returns for investors? Here's the lowdown. 

One form of value investing argues that buying the laggard in a peer group often makes sense. The idea is the company has an opportunity to play catch-up with its peers in terms of operational metrics and, in doing so, release a significant amount of value for investors. 

It's a beautiful idea, but it comes with the caveat that management is willing and able to do so. 

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Source Fool.com