Scratch out is a rubbing compound. It means that it actually rubs scratches off - an abrasive action. I have found it to be very effective on minor scratches. To give you an idea - if you live in a city like Delhi you are bound to get "parking scratches". The kind of scratches your car gets when the kids try drawing pictures on your cars with wires and blades.
Scratch out works really well with these and minor scratch marks from other vehicles.
The best results are when one uses wax as well after the "scratch out". However I have not tried this yet. Neither have I compared this with the 3M compound.
A negative is that it comes in paste as well as liquid form. The buyer is given very little information as to which one to buy?
One aspect to consider is that this is a rubbing compund and therefore it can potentially damage the car’s original paint. However it is specifically mentioned on the bottle that it is safe for the car paint. My car’s manual(Honda City VTEC Plus) also mentions that there could be polishes/rubbing compounds that could potentially damage the paint but also advises that the approved ones are safe. I know 3M has a similar compound and it is approved by Honda in India and Formula 1 is approved by Honda in US. I therefore trusted Forumla 1 scratch out after considering this aspect.
Overall a good buy. I have used the liquid for the information.