HRL vs. MKC, TSN, BF.B, CELH, CLX, IFF, CAG, CPB, USFD, and LW
Should you be buying Hormel Foods stock or one of its competitors? The main competitors of Hormel Foods include McCormick & Company, Incorporated (MKC), Tyson Foods (TSN), Brown-Forman (BF.B), Celsius (CELH), Clorox (CLX), International Flavors & Fragrances (IFF), Conagra Brands (CAG), Campbell Soup (CPB), US Foods (USFD), and Lamb Weston (LW). These companies are all part of the "consumer staples" sector.
Hormel Foods (NYSE:HRL) and McCormick & Company, Incorporated (NYSE:MKC) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, media sentiment, valuation, institutional ownership, analyst recommendations, profitability, dividends, earnings and community ranking.
Hormel Foods pays an annual dividend of $1.13 per share and has a dividend yield of 3.3%. McCormick & Company, Incorporated pays an annual dividend of $1.68 per share and has a dividend yield of 2.3%. Hormel Foods pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. McCormick & Company, Incorporated pays out 64.1% of its earnings in the form of a dividend.
McCormick & Company, Incorporated has a net margin of 10.56% compared to Hormel Foods' net margin of 6.55%. McCormick & Company, Incorporated's return on equity of 14.45% beat Hormel Foods' return on equity.
41.0% of Hormel Foods shares are owned by institutional investors. Comparatively, 79.7% of McCormick & Company, Incorporated shares are owned by institutional investors. 0.7% of Hormel Foods shares are owned by insiders. Comparatively, 22.9% of McCormick & Company, Incorporated shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Hormel Foods has higher revenue and earnings than McCormick & Company, Incorporated. Hormel 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.
Hormel Foods has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Hormel Foods presently has a consensus target price of $31.00, suggesting a potential downside of 10.35%. McCormick & Company, Incorporated has a consensus target price of $77.88, suggesting a potential upside of 9.05%. Given McCormick & Company, Incorporated's stronger consensus rating and higher possible upside, analysts plainly believe McCormick & Company, Incorporated is more favorable than Hormel Foods.
In the previous week, McCormick & Company, Incorporated had 3 more articles in the media than Hormel Foods. MarketBeat recorded 12 mentions for McCormick & Company, Incorporated and 9 mentions for Hormel Foods. McCormick & Company, Incorporated's average media sentiment score of 1.00 beat Hormel Foods' score of 0.87 indicating that McCormick & Company, Incorporated is being referred to more favorably in the news media.
McCormick & Company, Incorporated received 9 more outperform votes than Hormel Foods when rated by MarketBeat users. Likewise, 57.99% of users gave McCormick & Company, Incorporated an outperform vote while only 57.73% of users gave Hormel Foods an outperform vote.
Summary
McCormick & Company, Incorporated beats Hormel Foods on 16 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HRL and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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