McCormick & Company, Incorporated (NYSE:MKC) and Greenlane (NASDAQ:GNLN) Critical Analysis

McCormick & Company, Incorporated (NYSE:MKC) and Greenlane (NASDAQ:GNLN) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares McCormick & Company, Incorporated and Greenlane”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$6.84 billion	1.88	$789.40 million	$6.10	7.84
Greenlane	$4.36 million	0.44	-$85.58 million	($78.30)	-0.04

McCormick & Company, Incorporated has higher revenue and earnings than Greenlane. Greenlane is trading at a lower price-to-earnings ratio than McCormick & Company, Incorporated, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

McCormick & Company, Incorporated has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Greenlane has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for McCormick & Company, Incorporated and Greenlane, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	8	6	0	2.43
Greenlane	1	0	0	0	1.00

McCormick & Company, Incorporated currently has a consensus target price of $64.27, indicating a potential upside of 34.40%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher probable upside, research analysts clearly believe McCormick & Company, Incorporated is more favorable than Greenlane.

Institutional & Insider Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 14.0% of Greenlane shares are held by institutional investors. 10.6% of McCormick & Company, Incorporated shares are held by insiders. Comparatively, 13.0% of Greenlane shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares McCormick & Company, Incorporated and Greenlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	23.12%	13.29%	5.87%
Greenlane	-3,001.59%	-234.48%	-193.18%

Summary

McCormick & Company, Incorporated beats Greenlane on 12 of the 14 factors compared between the two stocks.

About McCormick & Company, Incorporated

McCormick & Co., Inc. engages in the manufacturing, marketing, and distribution of spices, seasoning mixes, condiments, and other flavorful products to retail outlets, food manufacturers, and foodservice businesses. It operates through the Consumer and Flavor Solutions segments. The Consumer segment sells spices, seasonings, condiments, and sauces. The Flavor Solutions segment includes seasoning blends, spices and herbs, condiments, coating systems, and compound flavors. The company was founded by Willoughby M. McCormick in 1889 and is headquartered in Baltimore, MD.

About Greenlane

Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.