Reviewing McCormick & Company, Incorporated (NYSE:MKC) & Bunzl (OTCMKTS:BZLFY)

McCormick & Company, Incorporated (NYSE:MKC) and Bunzl (OTCMKTS:BZLFY) are both large-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Institutional & Insider Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 0.1% of Bunzl shares are held by institutional investors. 10.6% of McCormick & Company, Incorporated shares are held by insiders. Comparatively, 1.0% of Bunzl shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

McCormick & Company, Incorporated has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Bunzl has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Dividends

McCormick & Company, Incorporated pays an annual dividend of $1.92 per share and has a dividend yield of 3.8%. Bunzl pays an annual dividend of $0.69 per share and has a dividend yield of 4.0%. McCormick & Company, Incorporated pays out 31.9% of its earnings in the form of a dividend. McCormick & Company, Incorporated has increased its dividend for 38 consecutive years.

Profitability

This table compares McCormick & Company, Incorporated and Bunzl’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%
Bunzl	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for McCormick & Company, Incorporated and Bunzl, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	1	6	6	0	2.38
Bunzl	0	2	2	0	2.50

McCormick & Company, Incorporated presently has a consensus target price of $60.50, suggesting a potential upside of 18.62%. Given McCormick & Company, Incorporated’s higher probable upside, equities analysts clearly believe McCormick & Company, Incorporated is more favorable than Bunzl.

Valuation & Earnings

This table compares McCormick & Company, Incorporated and Bunzl”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$6.84 billion	2.00	$789.40 million	$6.01	8.49
Bunzl	$15.62 billion	0.73	$605.55 million	N/A	N/A

McCormick & Company, Incorporated has higher earnings, but lower revenue than Bunzl.

Summary

McCormick & Company, Incorporated beats Bunzl on 10 of the 15 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 Bunzl

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public sector customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom.