John B. Sanfilippo & Son (NASDAQ:JBSS) and McCormick & Company, Incorporated (NYSE:MKC) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
70.7% of John B. Sanfilippo & Son shares are held by institutional investors. Comparatively, 37.5% of McCormick & Company, Incorporated shares are held by institutional investors. 22.0% of John B. Sanfilippo & Son shares are held by insiders. Comparatively, 11.0% of McCormick & Company, Incorporated shares are held by 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.
Profitability
This table compares John B. Sanfilippo & Son and McCormick & Company, Incorporated's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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John B. Sanfilippo & Son | 6.19% | 23.13% | 13.21% |
McCormick & Company, Incorporated | 13.75% | 20.93% | 7.24% |
Earnings & Valuation
This table compares John B. Sanfilippo & Son and McCormick & Company, Incorporated's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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John B. Sanfilippo & Son | $880.09 million | 1.17 | $54.11 million | N/A | N/A |
McCormick & Company, Incorporated | $5.35 billion | 4.21 | $702.70 million | $2.67 | 31.62 |
McCormick & Company, Incorporated has higher revenue and earnings than John B. Sanfilippo & Son.
Dividends
John B. Sanfilippo & Son pays an annual dividend of $0.65 per share and has a dividend yield of 0.7%. McCormick & Company, Incorporated pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. McCormick & Company, Incorporated pays out 50.9% of its earnings in the form of a dividend.
Risk and Volatility
John B. Sanfilippo & Son has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for John B. Sanfilippo & Son and McCormick & Company, Incorporated, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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John B. Sanfilippo & Son | 0 | 0 | 1 | 0 | 3.00 |
McCormick & Company, Incorporated | 2 | 4 | 3 | 0 | 2.11 |
John B. Sanfilippo & Son presently has a consensus target price of $100.00, indicating a potential upside of 11.21%. McCormick & Company, Incorporated has a consensus target price of $81.5556, indicating a potential downside of 3.40%. Given John B. Sanfilippo & Son's stronger consensus rating and higher possible upside, research analysts clearly believe John B. Sanfilippo & Son is more favorable than McCormick & Company, Incorporated.
Summary
McCormick & Company, Incorporated beats John B. Sanfilippo & Son on 8 of the 15 factors compared between the two stocks.