Critical Analysis: Jammin Java (JAMN) and MCCORMICK & CO /SH (MKC)
Jammin Java (OTCMKTS:JAMN) and MCCORMICK & CO /SH (NYSE:MKC) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Risk & Volatility
Jammin Java has a beta of -5.5, meaning that its share price is 650% less volatile than the S&P 500. Comparatively, MCCORMICK & CO /SH has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
This table compares Jammin Java and MCCORMICK & CO /SH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MCCORMICK & CO /SH||16.57%||21.83%||6.22%|
Insider & Institutional Ownership
77.8% of MCCORMICK & CO /SH shares are held by institutional investors. 18.2% of Jammin Java shares are held by company insiders. Comparatively, 19.2% of MCCORMICK & CO /SH shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Jammin Java and MCCORMICK & CO /SH, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MCCORMICK & CO /SH||1||7||1||0||2.00|
MCCORMICK & CO /SH has a consensus price target of $127.13, suggesting a potential downside of 16.12%. Given MCCORMICK & CO /SH’s higher probable upside, analysts clearly believe MCCORMICK & CO /SH is more favorable than Jammin Java.
MCCORMICK & CO /SH pays an annual dividend of $2.08 per share and has a dividend yield of 1.4%. Jammin Java does not pay a dividend. MCCORMICK & CO /SH pays out 48.8% of its earnings in the form of a dividend. MCCORMICK & CO /SH has increased its dividend for 31 consecutive years.
Valuation & Earnings
This table compares Jammin Java and MCCORMICK & CO /SH’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jammin Java||$11.20 million||0.00||-$5.20 million||N/A||N/A|
|MCCORMICK & CO /SH||$4.83 billion||4.13||$477.40 million||$4.26||35.58|
MCCORMICK & CO /SH has higher revenue and earnings than Jammin Java.
MCCORMICK & CO /SH beats Jammin Java on 13 of the 14 factors compared between the two stocks.
Jammin Java Company Profile
Jammin Java Corp. produces and sells roasted coffee under the Marley Coffee brand name in the United States and internationally. It distributes roasted coffee to grocery, retail, online, service, hospitality, office coffee service, and big box store industries. The company was formerly known as Marley Coffee Inc. and changed its name to Jammin Java Corp. in July 2009. Jammin Java Corp. was founded in 2004 and is headquartered in Denver, Colorado.
MCCORMICK & CO /SH Company Profile
McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates through two segments, Consumer and Industrial. The Consumer segment offers spices, herbs, and seasonings, as well as desserts. This segment markets its products under the McCormick, French, Frank's RedHot, Lawry's, Club House, Gourmet Garden, OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and Drogheria & Alimentari, and Vahiné brand names in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brand names in Australia, as well as markets regional and ethnic brands, such as Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. It also supplies its products under the private labels. This segment serves retailers comprising grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors or wholesalers. The Industrial segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. McCormick & Company, Incorporated was founded in 1889 and is headquartered in Hunt Valley, Maryland.
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