Reviewing Amira Nature Foods (ANFI) and McCormick & Company, (MKC)
Amira Nature Foods (NYSE: ANFI) and McCormick & Company, (NYSE:MKC) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
McCormick & Company, pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. Amira Nature Foods does not pay a dividend. McCormick & Company, pays out 49.9% of its earnings in the form of a dividend. Amira Nature Foods has raised its dividend for 30 consecutive years.
This table compares Amira Nature Foods and McCormick & Company,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Amira Nature Foods||N/A||N/A||N/A|
|McCormick & Company,||10.69%||28.28%||10.36%|
This is a breakdown of current ratings and recommmendations for Amira Nature Foods and McCormick & Company,, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Amira Nature Foods||0||1||1||0||2.50|
|McCormick & Company,||0||4||4||0||2.50|
Amira Nature Foods presently has a consensus price target of $13.00, indicating a potential upside of 125.30%. McCormick & Company, has a consensus price target of $103.14, indicating a potential upside of 5.55%. Given Amira Nature Foods’ higher probable upside, analysts plainly believe Amira Nature Foods is more favorable than McCormick & Company,.
Institutional & Insider Ownership
12.5% of Amira Nature Foods shares are held by institutional investors. Comparatively, 72.7% of McCormick & Company, shares are held by institutional investors. 15.3% of McCormick & Company, shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Amira Nature Foods and McCormick & Company,’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Amira Nature Foods||$551.88 million||0.39||$70.71 million||N/A||N/A|
|McCormick & Company,||$4.48 billion||2.72||$776.80 million||$3.77||25.92|
McCormick & Company, has higher revenue and earnings than Amira Nature Foods.
Volatility and Risk
Amira Nature Foods has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, McCormick & Company, has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
McCormick & Company, beats Amira Nature Foods on 11 of the 14 factors compared between the two stocks.
About Amira Nature Foods
Amira Nature Foods Ltd is primarily engaged in the business of processing and selling packaged Indian specialty rice, primarily basmati rice and other food products. The Company sells Basmati rice and other specialty rice, under its Amira brand, as well as under other third-party brands. It also sells non-basmati rice. It has developed a line of Amira branded products to complement its packaged rice offerings, including edible oil, snacks, ready-to-heat meals and a line of organic product offerings. It is engaged in the institutional sale of bulk commodities to international and regional trading firms, which includes wheat, barley, legume, maize, sugar, soybean meal, onion, potato, millet and others. Its Amira branded product line includes Amira Pure Basmati Rice, Amira Indian Basmati Rice, Smoked Basmati Rice, Amira Khichdi Rice, Amira Navratan Mix and others. The Company’s third-party branded rice products include Euricom Brown Basmati Rice, Bonne Chance Long Grain Rice and others.
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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