Contrasting McCormick & Company, (MKC) and The Competition
McCormick & Company, (NYSE: MKC) is one of 50 publicly-traded companies in the “Food Processing” industry, but how does it contrast to its competitors? We will compare McCormick & Company, to related businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Valuation and Earnings
This table compares McCormick & Company, and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|McCormick & Company,||$4.48 billion||$776.80 million||27.16|
|McCormick & Company, Competitors||$8.38 billion||$1.05 billion||22.62|
McCormick & Company,’s competitors have higher revenue and earnings than McCormick & Company,. McCormick & Company, is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This table compares McCormick & Company, and its competitors’ 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 breakdown of current ratings and recommmendations for McCormick & Company, and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company,||0||6||4||0||2.40|
|McCormick & Company, Competitors||263||1497||1851||53||2.46|
McCormick & Company, presently has a consensus price target of $104.00, suggesting a potential upside of 5.78%. As a group, “Food Processing” companies have a potential downside of 2.01%. Given McCormick & Company,’s higher probable upside, equities analysts plainly believe McCormick & Company, is more favorable than its competitors.
Insider and Institutional Ownership
72.7% of McCormick & Company, shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Food Processing” companies are owned by institutional investors. 15.3% of McCormick & Company, shares are owned by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
McCormick & Company, has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, McCormick & Company,’s competitors have a beta of 0.72, indicating that their average stock price is 28% less volatile than the S&P 500.
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 2.5% and pay out 60.1% of their earnings in the form of a dividend. McCormick & Company, has raised its dividend for 30 consecutive years.
McCormick & Company, beats its competitors on 8 of the 15 factors compared.
McCormick & Company, Company Profile
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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