McCormick & Company, Incorporated (NYSE:MKC) and Cal-Maine Foods (NASDAQ:CALM) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Profitability
This table compares McCormick & Company, Incorporated and Cal-Maine Foods' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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McCormick & Company, Incorporated | 13.75% | 20.93% | 7.24% |
Cal-Maine Foods | 4.65% | 6.77% | 5.71% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for McCormick & Company, Incorporated and Cal-Maine Foods, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
McCormick & Company, Incorporated | 2 | 4 | 3 | 0 | 2.11 |
Cal-Maine Foods | 0 | 0 | 2 | 0 | 3.00 |
McCormick & Company, Incorporated currently has a consensus price target of $81.5556, suggesting a potential downside of 3.40%. Cal-Maine Foods has a consensus price target of $47.00, suggesting a potential upside of 14.86%. Given Cal-Maine Foods' stronger consensus rating and higher probable upside, analysts clearly believe Cal-Maine Foods is more favorable than McCormick & Company, Incorporated.
Valuation & Earnings
This table compares McCormick & Company, Incorporated and Cal-Maine Foods' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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McCormick & Company, Incorporated | $5.35 billion | 4.21 | $702.70 million | $2.67 | 31.62 |
Cal-Maine Foods | $1.35 billion | 1.48 | $18.39 million | $0.44 | 93.00 |
McCormick & Company, Incorporated has higher revenue and earnings than Cal-Maine Foods. McCormick & Company, Incorporated is trading at a lower price-to-earnings ratio than Cal-Maine Foods, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
37.5% of McCormick & Company, Incorporated shares are owned by institutional investors. Comparatively, 78.2% of Cal-Maine Foods shares are owned by institutional investors. 11.0% of McCormick & Company, Incorporated shares are owned by insiders. Comparatively, 27.5% of Cal-Maine Foods shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
McCormick & Company, Incorporated has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Cal-Maine Foods has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500.
Summary
McCormick & Company, Incorporated beats Cal-Maine Foods on 9 of the 14 factors compared between the two stocks.