McCormick & Company, Incorporated (NYSE: MKC) and Greencore (OTCMKTS:GNCGY) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
This is a breakdown of recent recommendations and price targets for McCormick & Company, Incorporated and Greencore, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company, Incorporated||1||5||3||0||2.22|
This table compares McCormick & Company, Incorporated and Greencore’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company, Incorporated||16.04%||23.39%||6.49%|
McCormick & Company, Incorporated pays an annual dividend of $2.08 per share and has a dividend yield of 1.9%. Greencore pays an annual dividend of $0.25 per share and has a dividend yield of 2.9%. McCormick & Company, Incorporated pays out 48.8% of its earnings in the form of a dividend. Greencore pays out 32.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. McCormick & Company, Incorporated has increased its dividend for 31 consecutive years. Greencore is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares McCormick & Company, Incorporated and Greencore’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McCormick & Company, Incorporated||$4.83 billion||2.94||$477.40 million||$4.26||25.46|
|Greencore||$2.94 billion||0.51||$15.46 million||$0.78||10.96|
McCormick & Company, Incorporated has higher revenue and earnings than Greencore. Greencore 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.
Institutional and Insider Ownership
79.8% of McCormick & Company, Incorporated shares are owned by institutional investors. Comparatively, 0.0% of Greencore shares are owned by institutional investors. 19.2% of McCormick & Company, Incorporated shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
McCormick & Company, Incorporated has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Greencore has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.
McCormick & Company, Incorporated beats Greencore on 12 of the 15 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.
Greencore Group plc produces and sells various food products primarily in the United Kingdom and the United States. It operates through Convenience Foods UK & Ireland, Convenience Foods US, and Ingredients and Property segments. The company provides sandwiches, wraps, rolls, sub-rolls, flatbreads, baguettes, bagels, prepared salads, and sushi products; and prepared meals, such as chilled ready meals, chilled sauces and soups, and quiches. It also offers grocery products comprising cooking sauces, table sauces, pickles, Yorkshire puddings, cakes, and desserts, as well as various convenience food products; and frozen breakfast sandwiches, kid, frozen sandwiches, and salad kits. It provides its products primarily through retailers, coffee shops, grocery stores, convenience stores, supermarket and high street chains, and petrol forecourts. Greencore Group plc was founded in 1991 and is headquartered in Dublin, Ireland.
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