Inventure Foods (SNAK) and McCormick & Company, Incorporated (MKC) Head-To-Head Survey

Inventure Foods (NASDAQ: SNAK) and McCormick & Company, Incorporated (NYSE:MKC) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Risk & Volatility

Inventure Foods has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Dividends

McCormick & Company, Incorporated pays an annual dividend of $2.08 per share and has a dividend yield of 2.0%. Inventure Foods does not pay a dividend. McCormick & Company, Incorporated pays out 57.6% of its earnings in the form of a dividend. Inventure Foods has increased its dividend for 30 consecutive years.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inventure Foods $269.01 million 0.29 -$30.24 million ($1.93) -2.07
McCormick & Company, Incorporated $4.41 billion 3.01 $472.30 million $3.61 28.11

McCormick & Company, Incorporated has higher revenue and earnings than Inventure Foods. Inventure Foods 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inventure Foods 0 2 0 0 2.00
McCormick & Company, Incorporated 0 6 3 0 2.33

Inventure Foods presently has a consensus price target of $8.00, indicating a potential upside of 100.50%. McCormick & Company, Incorporated has a consensus price target of $105.75, indicating a potential upside of 4.22%. Given Inventure Foods’ higher possible upside, analysts clearly believe Inventure Foods is more favorable than McCormick & Company, Incorporated.

Insider & Institutional Ownership

69.3% of Inventure Foods shares are held by institutional investors. Comparatively, 76.1% of McCormick & Company, Incorporated shares are held by institutional investors. 6.4% of Inventure Foods shares are held by company insiders. Comparatively, 15.3% of McCormick & Company, Incorporated shares are held by company 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 Inventure Foods and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inventure Foods -19.95% N/A -20.97%
McCormick & Company, Incorporated 10.05% 26.09% 8.17%

Summary

McCormick & Company, Incorporated beats Inventure Foods on 13 of the 17 factors compared between the two stocks.

Inventure Foods Company Profile

Inventure Foods, Inc. is a marketer and manufacturer of healthy/natural and indulgent specialty snack food brands. The Company operates in the snack products segment. The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products and extruded products for sale primarily to snack food distributors and retailers. The products sold under its snack products segment includes products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category. Its Snack Products segment’s brands include Boulder Canyon, Nathan’s Famous, T.G.I. Friday’s, Poore Brothers, and Bob’s Texas Style.

McCormick & Company, Incorporated 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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