Head-To-Head Review: McCormick & Company, Incorporated (MKC) & Inventure Foods (SNAK)
McCormick & Company, Incorporated (NYSE: MKC) and Inventure Foods (NASDAQ:SNAK) are both non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
This is a breakdown of recent recommendations and price targets for McCormick & Company, Incorporated and Inventure Foods, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company, Incorporated||0||6||3||0||2.33|
McCormick & Company, Incorporated presently has a consensus target price of $105.75, indicating a potential upside of 2.45%. Inventure Foods has a consensus target price of $8.00, indicating a potential upside of 100.50%. Given Inventure Foods’ higher probable upside, analysts plainly believe Inventure Foods is more favorable than McCormick & Company, Incorporated.
Earnings and Valuation
This table compares McCormick & Company, Incorporated and Inventure Foods’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McCormick & Company, Incorporated||$4.41 billion||3.07||$472.30 million||$3.61||28.59|
|Inventure Foods||$269.01 million||0.29||-$30.24 million||($1.93)||-2.07|
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.
This table compares McCormick & Company, Incorporated and Inventure Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company, Incorporated||10.05%||26.09%||8.17%|
Insider & Institutional Ownership
76.1% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 69.3% of Inventure Foods shares are held by institutional investors. 15.3% of McCormick & Company, Incorporated shares are held by company insiders. Comparatively, 6.4% of Inventure Foods shares 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, 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. McCormick & Company, Incorporated has raised its dividend for 31 consecutive years.
Risk & Volatility
McCormick & Company, Incorporated has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Inventure Foods has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
McCormick & Company, Incorporated beats Inventure Foods on 14 of the 17 factors compared between the two stocks.
About McCormick & Company, Incorporated
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.
About Inventure Foods
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.
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