Head-To-Head Comparison: McCormick & Company, (MKC) & 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 peers? We will compare McCormick & Company, to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.
Risk and Volatility
McCormick & Company, has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, McCormick & Company,’s peers have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.
Valuation and Earnings
This table compares McCormick & Company, and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|McCormick & Company,||$4.48 billion||$776.80 million||26.24|
|McCormick & Company, Competitors||$8.38 billion||$1.04 billion||22.57|
McCormick & Company,’s peers have higher revenue and earnings than McCormick & Company,. McCormick & Company, is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
McCormick & Company, pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. McCormick & Company, pays out 49.9% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.4% and pay out 58.4% of their earnings in the form of a dividend. McCormick & Company, has raised its dividend for 30 consecutive years.
This is a breakdown of current recommendations for McCormick & Company, and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company,||0||5||4||0||2.44|
|McCormick & Company, Competitors||358||1653||1888||61||2.42|
McCormick & Company, currently has a consensus target price of $102.75, suggesting a potential upside of 3.85%. As a group, “Food Processing” companies have a potential downside of 0.67%. Given McCormick & Company,’s stronger consensus rating and higher probable upside, equities analysts clearly believe McCormick & Company, is more favorable than its peers.
This table compares McCormick & Company, and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company,||10.69%||28.28%||10.36%|
|McCormick & Company, Competitors||4.09%||11.51%||4.84%|
Insider & Institutional Ownership
72.9% of McCormick & Company, shares are held by institutional investors. Comparatively, 63.5% of shares of all “Food Processing” companies are held by institutional investors. 15.3% of McCormick & Company, shares are held by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
McCormick & Company, beats its peers on 9 of the 15 factors compared.
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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