McCormick & Company, (MKC) versus The Competition Head-To-Head Review
McCormick & Company, (NYSE: MKC) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it contrast to its rivals? We will compare McCormick & Company, to related businesses based on the strength of its valuation, analyst recommendations, risk, profitability, dividends, earnings and institutional ownership.
McCormick & Company, pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. McCormick & Company, pays out 51.9% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.6% and pay out 60.1% of their earnings in the form of a dividend. McCormick & Company, has raised its dividend for 30 consecutive years.
Volatility and Risk
McCormick & Company, has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, McCormick & Company,’s rivals have a beta of 0.72, meaning that their average share price is 28% less volatile than the S&P 500.
Insider & Institutional Ownership
72.7% of McCormick & Company, shares are held by institutional investors. Comparatively, 63.6% of shares of all “Food Processing” companies are held by institutional investors. 15.3% of McCormick & Company, shares are held by insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares McCormick & Company, and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company,||10.05%||26.09%||8.17%|
|McCormick & Company, Competitors||4.08%||11.36%||4.77%|
This is a summary of recent ratings and price targets for McCormick & Company, and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company,||0||6||4||0||2.40|
|McCormick & Company, Competitors||264||1500||1855||53||2.46|
McCormick & Company, currently has a consensus price target of $104.56, suggesting a potential upside of 7.29%. As a group, “Food Processing” companies have a potential downside of 1.55%. Given McCormick & Company,’s higher probable upside, equities research analysts plainly believe McCormick & Company, is more favorable than its rivals.
Earnings and Valuation
This table compares McCormick & Company, and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|McCormick & Company,||$4.48 billion||$776.80 million||26.92|
|McCormick & Company, Competitors||$8.38 billion||$1.05 billion||22.31|
McCormick & Company,’s rivals have higher revenue and earnings than McCormick & Company,. McCormick & Company, is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
McCormick & Company, beats its rivals on 8 of the 15 factors compared.
About McCormick & Company,
McCormick & Company, Incorporated is engaged in manufacturing, marketing and distributing spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company’s segments include consumer and industrial. The Company is involved in the manufacturing and sales of flavorful products. As of November 30, 2016, it offered brands for consumers in approximately 150 countries and territories. The Company’s brands in the Americas include McCormick, Lawry’s, and Club House, as well as brands, such as Gourmet Garden and OLD BAY. It provides a range of products to food manufacturers and foodservice customers. The Company’s sales, distribution and production facilities are located in North America, Europe and China. It markets regional and ethnic brands, such as Zatarain’s, Stubb’s, Thai Kitchen and Simply Asia. The Company offers sensory testing, culinary research, food safety and flavor application.
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