Reviewing McCormick & Company, (MKC) and Its Competitors
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 related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
72.7% of McCormick & Company, shares are owned by institutional investors. Comparatively, 63.3% of shares of all “Food Processing” companies are owned by institutional investors. 15.3% of McCormick & Company, shares are owned by insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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.
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,||10.05%||26.09%||8.17%|
|McCormick & Company, Competitors||4.13%||11.51%||4.85%|
McCormick & Company, pays an annual dividend of $1.88 per share and has a dividend yield of 1.8%. McCormick & Company, pays out 51.9% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.5% and pay out 59.0% of their earnings in the form of a dividend. McCormick & Company, has increased its dividend for 30 consecutive years.
This is a breakdown of recent ratings for McCormick & Company, and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company,||0||4||4||0||2.50|
|McCormick & Company, Competitors||360||1673||1910||62||2.42|
McCormick & Company, presently has a consensus price target of $103.57, indicating a potential upside of 0.91%. As a group, “Food Processing” companies have a potential upside of 0.50%. Given McCormick & Company,’s stronger consensus rating and higher possible upside, equities analysts plainly believe McCormick & Company, is more favorable than its peers.
Valuation & 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||28.35|
|McCormick & Company, Competitors||$8.38 billion||$1.05 billion||22.45|
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, beats its peers on 10 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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