Analyzing McCormick & Company, Incorporated (NYSE:MKC) & Local Bounti (NYSE:LOCL)

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

Volatility and Risk

McCormick & Company, Incorporated has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Local Bounti has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	21.91%	12.78%	5.76%
Local Bounti	-130.52%	N/A	-16.45%

Analyst Ratings

This is a breakdown of current recommendations and price targets for McCormick & Company, Incorporated and Local Bounti, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	8	5	0	2.38
Local Bounti	1	0	0	0	1.00

McCormick & Company, Incorporated currently has a consensus target price of $60.00, suggesting a potential upside of 19.83%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher probable upside, research analysts clearly believe McCormick & Company, Incorporated is more favorable than Local Bounti.

Insider and Institutional Ownership

79.7% of McCormick & Company, Incorporated shares are owned by institutional investors. Comparatively, 28.0% of Local Bounti shares are owned by institutional investors. 10.6% of McCormick & Company, Incorporated shares are owned by insiders. Comparatively, 21.0% of Local Bounti shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares McCormick & Company, Incorporated and Local Bounti”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$6.84 billion	1.97	$789.40 million	$6.01	8.33
Local Bounti	$48.37 million	0.55	-$94.38 million	($2.77)	-0.41

McCormick & Company, Incorporated has higher revenue and earnings than Local Bounti. Local Bounti 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.

Summary

McCormick & Company, Incorporated beats Local Bounti 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 Local Bounti

Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.